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HomeMy WebLinkAbout06-08-2011 Administration Committee Agenda 6/8/11 Administration Committee Agenda Page 1 of 4 Orange County Sanitation District Regular Meeting of the Administration Committee Wednesday, June 8, 2011 5:30 P.M. Administration Building Board Room 10844 Ellis Avenue Fountain Valley, CA (714) 593-7130 AGENDA PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak, please complete a Speaker’s Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: CONSENT CALENDAR: 1. Approve Minutes of the May 11, 2011, Administration Committee meeting. ACTION ITEMS: 2. A) Recommend to the Board of Directors to approve a Purchase Order Agreement with CDW-G, the lowest responsive and responsible bidder, for Purchase of Cisco Parts, Specification No. E-2011-481BD, for an amount not to exceed $225,354; and, B) Approve a contingency of $22,535 (10%). 3. A) Recommend to the Board of Directors to renew the Sanitation District’s Excess General Liability Insurance for the period July 1, 2011 through June 30, 2012, in an amount not to exceed $366,000. B) Renew the Sanitation District’s Excess Workers’ Compensation Insurance for the period July 1, 2011 through June 30, 2012 at a rate not to exceed .00342 (estimated premium of $213,100 based on estimated 2011-12 payroll). 6/8/11 Administration Committee Agenda Page 2 of 4 C) Renew the Sanitation District’s All-Risk Property and Flood Insurance for the period July 1, 2011 through June 30, 2012, in an amount not to exceed $450,000. D) Renew the Sanitation District’s Boiler & Machinery Insurance Program for the period July 1, 2011 through June 30, 2012, in an amount not to exceed $16,500. 4. A) Approve a Purchase Order Agreement for Temporary Employment Services, Specification No. CS-2009-421BD, with temporary service firms for a total amount not to exceed $126,000 per year, for a one-year period July 1, 2011 through June 30, 2012, with a one-year renewal option; B) Approve an annual contingency of $24,000 (19%); and, C) Authorize the General Manager to add or delete such firms as necessary to meet work requirements as identified by the Human Resources Department. 5. Recommend to the Board of Directors to Adopt Resolution No. OCSD 11-XX, Establishing Use Charges for the FY 2011-12 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. 6. Recommend to the Board of Directors to approve the proposed revisions to the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2011-12, as follows: Originally Proposed Adopted Budget Revised Budget FY 2011-12 FY 2011-12 Operations & Maintenance $156,090,770 $152,545,540 Capital Improvement Program 122,423,000 129,169,900 Debt/COP Service Re-Purchase of Excess Capacity 97,052,940 29,690,000 92,162,910 29,690,000 General Liability and Property Self-Insurance 1,606,200 1,606,200 Worker's Compensation Self Insurance 550,000 550,000 TOTAL $407,412,910 $405,724,550 INFORMATIONAL ITEMS: N/A 6/8/11 Administration Committee Agenda Page 3 of 4 CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employee actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are not available for public inspection. At such time as final actions are taken by the Committee on any of these subjects, the minutes will reflect all required disclosures of information. Convene in closed session. (1) CONFER WITH DISTRICT NEGOTIATORS (Government Code Section 54954.5(f)) · Agency Designated Representatives: James D. Ruth, General Manager; Robert Ghirelli, Assistant General Manager; Jim Herberg, Assistant General Manager, Jeff Reed, Director of Human Resources; and, Richard Spencer, Human Resources Supervisor. · Employee Organizations: International Union of Operating Engineers, Local 501 and Orange County Employees Association (OCEA) Reconvene in regular session. Consideration of action, if any, on matters considered in closed session. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Administration Committee meeting is scheduled for Wednesday, July 13, 2011, at 5:30 p.m. 6/8/11 Administration Committee Agenda Page 4 of 4 Accommodations for the Disabled: Meeting rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board’s office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria Ayala, Clerk of the Board (714) 593-7130 mayala@ocsd.com 1DW-102 Board AR, Rev 10/04/ Page 1 of 2 ADMINISTRATION COMMITTEE Meeting Date 06/08/11 To Bd. of Dir. 06/22/11 AGENDA REPORT Item Number 2 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director, Finance and Administrative Services SUBJECT: Purchase of Computer Network Parts for J-33-3 GENERAL MANAGER'S RECOMMENDATION A. Approve a Purchase Order Agreement with CDW-G, the lowest responsive and responsible bidder, for Purchase of Cisco Parts, Specification No. E-2011-481BD, for an amount not to exceed $225,354; and, B. Approve a contingency of $22,535 (10%). SUMMARY This procurement provides Information Technology networking equipment to support the process control network in the J-33-3 Power Monitoring and Control Systems project. The J-33-3 project installs electrical power monitoring and control equipment at Plant 1. The control system will continuously adjust the electrical system to prevent power variations and outages from causing process failures. PRIOR COMMITTEE/BOARD ACTIONS 04/24/1992: Established Cisco Equipment as the Sanitation District’s standard networking equipment ADDITIONAL INFORMATION This procurement was competitively bid with 16 perspective bidders with four bid packages being received by the Sanitation District. The companies that bid and the bid amounts are listed below. Staff recommends CDW-G be awarded the Purchase of Cisco Parts purchase order as the lowest responsible and responsible bidder. 1DW-102 Board AR, Rev 10/04/ Page 2 of 2 Purchase of Cisco Parts Bid Date – 04/20/2011 @ 2:00 P.M. E-2011-481BD Bidder Amount of Bid CDW-G $225,353.28 Aprisa Technology LLC $235,629.04 IMPEX Technologies, Inc. $245,490.17 Network Integration Company Partners $245,594.89 CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District’s Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 89). Project contingency funds will not be used for this Purchase Order. Date of Approval Purchase Order Amount Contingency 06/22/2011 $225,354 $22,535 (10%) Page 1 of 4 ADMINISTRATION COMMITTEE Meeting Date 06/08/11 To Bd. of Dir. 06/22/11 AGENDA REPORT Item Number 3 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance & Administrative Services SUBJECT: Annual Renewal of the Sanitation District’s Major Operational Insurance Programs for FY 2011-12 GENERAL MANAGER'S RECOMMENDATION 1) Renew the Sanitation District’s Excess General Liability Insurance for the period July 1, 2011 through June 30, 2012, in an amount not to exceed $366,000; 2) Renew the Sanitation District’s Excess Workers’ Compensation Insurance for the period July 1, 2011 through June 30, 2012 at a rate not to exceed .00342 (estimated premium of $213,100 based on estimated 2011-12 payroll); 3) Renew the Sanitation District’s All-Risk Property and Flood Insurance for the period July 1, 2011 through June 30, 2012, in an amount not to exceed $450,000; and, 4) Renew the Sanitation District’s Boiler & Machinery Insurance Program for the period July 1, 2011 through June 30, 2012, in an amount not to exceed $16,500. SUMMARY The Sanitation District budget provides funds for the renewal of the following four major insurances for operations: 1) Excess General Liability Insurance 2) Excess Workers’ Compensation 3) All-Risk Property and Flood insurance 4) Boiler & Machinery insurance As a group the recommended renewals are 7% up from last year, with the possibility of improvement at final renewal. The Sanitation District’s broker will be present at the Committee meeting to give us the latest pricing, with the recommendations above based on “not to exceed” numbers which may be improved upon by the time of the meeting. Page 2 of 4 PRIOR COMMITTEE/BOARD ACTIONS June 2010 - The Board approved renewal of the above four policies for the period July 1, 2010 through June 30, 2011. ADDITIONAL INFORMATION 1) Excess General Liability Insurance Program The Sanitation District’s Excess General Liability Insurance Program is currently provided through the California Municipal Excess Liability Program (CAMEL) and its sister program, the Alliant National Municipal Liability Program (ANML). The Sanitation District has participated in the CAMEL program since FY 1996-97. This program currently provides the Sanitation District with a $30 million policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to also include Employment Practices, and Public Officials Errors & Omissions coverage. The $30 million coverage is per occurrence, with a self-insured deductible of $250,000 per occurrence and $500,000 deductible for employment practices claims. Since 1997, the Employment Practices portion of coverage has been enhanced from a $2 million sub-limit to the full $30 million policy limit. The actual insurance coverage currently consists of two separate layers. The first layer is the “Basic” $10 million program with self-insured retention of $250,000. The second layer consists of $20 million of coverage in excess of the first layer of $10 million. The current projected 2011-12 premium is $360,000, an increase of $11,606 (3%) over the 2010-11 premium. 2) Excess Workers’ Compensation Insurance The Excess Workers’ Compensation insurance coverage is with the California State Association of Counties Excess Insurance Authority (CSAC EIA). The Sanitation District has participated in this program or its predecessor since 2003. Excess Workers’ Compensation Program currently provides so-called “Statutory” (unlimited) coverage with a self-insured retention (SIR), or deductible, of $500,000. The use of Excess Workers’ Compensation Insurance dates back to the late 1980’s. At that time, the Fiscal Policy Committee approved a SIR, or deductible, of $250,000, for such coverage. Due to the hardening of the workers’ compensation market, this deductible was raised to $500,000 beginning in FY 2002-03 through a policy with Employers Reinsurance Corporation (ERC) that provided coverage at the time of $25 million with a self-insured retention (SIR), or deductible of $500,000. Page 3 of 4 Some additional risk may be associated with the CSAC EIA joint powers authority in that a premium surcharge can be assessed to individual members if an unusually large number of losses were to occur outside of the actuarial evaluation estimates. However, historically the CSAC EIA premiums for excess workers compensation have been so much less than competing quotes available to the Sanitation District that if even there were a surcharge, the cost might still continue to be cheaper. The renewal of the Excess Workers’ Compensation Insurance for the period July 1, 2010 through June 30, 2011 was at a rate of .002763 (close to the previous year’s rate of .002658). The premium rate is based on the estimated total payroll. Since the actual final payroll amount is not known until the end of the year, the Sanitation District will not know the exact final premium until the year is over. The current projected 2011-12 premium is $213,100, an increase of $38,100 (22%) over the 2010-11 premium. 3) All-Risk Property and Flood Insurance All-Risk Property and Flood Insurance Program (Property Insurance) provides for comprehensive coverage for most of the Sanitation District’s real and personal property regarding virtually all perils including fire, flood, and business interruption. The Sanitation District previously carried earthquake insurance as part of its Property Insurance, but in the last few years earthquake insurance has been impossible to obtain or not cost-effective. Currently, the Sanitation District has earthquake insurance only in connection with some of its buildings under construction. Current Property Insurance limits are $1 billion for most perils other than flood and earthquakes, and $300 million for flood, with many sub-limits for various situations. In order to reach $1 billion in limits, the broker had to arrange for nearly a dozen different layers of insurers. The SIR is $250,000 per occurrence for most types of losses. Since the late 1990’s, the Property Insurance has been with a nationwide joint purchase property insurance program called Public Entity Property Insurance Program (PEPIP), one of the world’s largest property programs. It is important to note that this joint purchase property insurance program offers the purchasing power of numerous large public entities without the pooling or sharing of coverage or losses. The renewal of All-Risk Property and Flood Insurance for the period July 1, 2010 through June 30, 2011 was at a premium of $436,740, a decrease of 5.8 percent from the previous year. The current projected 2011-12 premium is $450,000, an increase of $13,260 (3%) over the 2010-11 premium. Page 4 of 4 4) Boiler & Machinery Insurance The Boiler & Machinery insurance program provides comprehensive coverage for loss caused by machinery breakdown and explosion of steam boilers or other covered process equipment, including damage to the equipment itself and damage to other property caused by covered accident. The current Boiler & Machinery insurance program provides coverage ($100 million per occurrence/ with deductibles ranging from $25,000 to $350,000) for losses caused by covered machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines). Damages to the equipment, as well as damages to other property and improvements caused by the machinery breakdown, are covered by the boiler & machinery insurance. This program augments the Sanitation District’s all-risk property insurance that covers perils such as fire and flood. The renewal of the Boiler & Machinery Insurance Program for the period July 1, 2010 through June 30, 2011 was at $15,578, a decrease of about 9 percent from the prior year. The current projected 2011-12 premium is $16,500, an increase of $922 (6%) over the 2010-11 premium. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A JR:LT:RK:jf Revised: 06/04/03 Page 1 ADMINISTRATION COMMITTEE Meeting Date 06/08/11 To Bd. of Dir. AGENDA REPORT Item Number 4 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jeff Reed, Director of Human Resources SUBJECT: Temporary Employment Services GENERAL MANAGER'S RECOMMENDATION A. Approve a Purchase Order Agreement for Temporary Employment Services, Specification No. CS-2009-421BD, with temporary service firms for a total amount not to exceed $126,000 per year, for a one-year period July 1, 2011 through June 30, 2012, with a one-year renewal option; B. Approve an annual contingency of $24,000 (19%); and, C. Authorize the General Manager to add or delete such firms as necessary to meet work requirements as identified by the Human Resources Department. SUMMARY · Orange County Sanitation District’s (OCSD) strategic staffing plan includes utilizing full-time and part-time regular employees, contract employees, and temporary employees. This report specifically focuses on temporary services employees who are utilized as a supplement to the regular workforce for accommodating workload demands and workflow fluctuations. · The key advantage associated with temporary staffing is flexibility, since temporary employees are used for adjusting staffing levels quickly and for a limited timeframe. Temporary services are utilized for filling approved budgeted positions due to illness, vacations, leaves of absence, and vacant open positions; in addition, temporary services are also used for approved special projects and budgeted capital improvement projects (CIP) that are non-engineering related. · In June 2004, the Board of Directors awarded contracts for Temporary Employment Services for a period of one year, renewable for a period of four years. The Board of Directors authorized staff to utilize a combination of several firms to supply temporary services to OCSD in order to provide staffing flexibility and to comply with the OCSD Purchasing Resolution. These contracts expired on June 30, 2009. Revised: 06/04/03 Page 2 Fiscal Year Amount 2011 – 2012 $150,000 2010 – 2011 $424,200 2009 – 2010 $760,020 2008 – 2009 $1,700,000 2007 – 2008 $1,700,000 PRIOR COMMITTEE/BOARD ACTIONS · On June 24, 2009 Board Meeting – Entered into contracts for Temporary Employment Services (Specification No CS-2009-421BD) with temporary service firms for a total amount of $450,000 per year, for a one-year period (July 1, 2009 through June 30, 2010), with a one-year renewal option. A $50,000 increase had been added to the projected budget as a contingency fund for unplanned staffing needs that adversely impacted OCSD staffing resources. · May 26, 2004 Board Meeting - Temporary Employment Services: (1) Authorize staff to establish contracts for Temporary Employment Services, Specification No. S-2004-181BD, with temporary service firms for a one year period, July 1, 2004 through June 30, 2005, for a total amount not to exceed $1,700,000 per year; (2) Authorize staff the option of four additional one year contract renewals, cancelable at any time, for a total amount not to exceed $1,700,000 per year; and, (3) Authorize staff to enter into these contracts with temporary service firms, as identified by the Human Resources Department, with the authorization to add or delete such firms as necessary to meet OCSD work requirements. ADDITIONAL INFORMATION The proposed FY11/12 Operating budget for temporary services is $150,000. The Operating budget account for projected temporary services expenditures is $126,000. A $24,000 increase has been added to the projected budget as a contingency fund for unplanned staffing needs that adversely impact OCSD staffing resources such as Leaves of Absences (LOA’s), promotions, and separations of employment. The contingency fund is being requested based on prior committee actions mentioned above where staff had to request periodic increases for the use of temporary services for CIP projects. This was due to CIP projects being initiated and approved by the Board during the fiscal year; however, appropriate staffing was not pre-planned during the initial budget process. There are approximately 4 temporary employees currently assigned to OCSD working predominantly on Information Technology, Engineering and Contracts assignments. Information Technology utilizes temporary staffing to support streamlining and automating of processes throughout the agency so that budgeted headcount does not need to be increased; in addition, the appropriate technical specialists can be utilized to augment existing skill sets as needed and for a limited time. The Contracts Division is utilizing temporary staffing to help support the full time staff due to the high amount of CIP projects that OCSD currently has underway. Revised: 06/04/03 Page 3 OCSD currently utilizes 8 temporary services agencies to provide temporary workers on an as-needed basis to accomplish OCSD work requirements. The cost of a temporary employee includes the temporary’s hourly rate. A mark-up rate is the “payment” to the temporary agency to cover the benefits provided to the temporary worker and overhead costs of the temporary agency. The mark-up rates for the current temporary agencies utilized by OCSD range from 30% to 70%. OCSD anticipates utilizing additional technical agencies in the future to meet departmental needs; therefore, staff is requesting authorization to enter into similar temporary services agreements with other providers without having to return to the Board to approve each additional staffing agency. Human Resources staff interviews each temporary agency prior to entering into a contract for services to ensure administrative requirements are met for doing business with OCSD. Temporary agencies work with the Purchasing Division to sign applicable forms and agree to the proper insurance and employment practices prior to entering into a contract with OCSD. The contract includes specific information related to work hours, billing rates, invoicing and payment, confidentiality, etc. The following is a list of current Temporary Employment Agencies under contract with OCSD: Aerotek Inc.: (General, Engineering, Laboratory) AppleOne Employment Services: (General) Material and Contract Services - Procurement Services Associates: (Contract Services) On Assignment - Lab Support: (Laboratory) TEG Staffing (Human Resources) TekSystems: (Technical) Project Partners (Technical) Xyon Business Solutions:(Technical) Award Date: 06/08/11 Contract Amount: $126,000/year Contingency: $24,000/year (19%) JDR:LT:JR:RS:jmf Page 1 ADMINISTRATION COMMITTEE Meeting Date 06/08/11 To Bd. of Dir. 06/22/11 AGENDA REPORT Item Number 5 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: Santa Ana Watershed Project Authority (SAWPA) 2011-12 Rates GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 11-XX, Establishing Use Charges for the FY 2011-12 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. SUMMARY Currently, OCSD invoices the Santa Ana Watershed Project Authority (SAWPA) on a quarterly basis for the wastewater discharge we receive from the SARI line. Annually, the rates for flow, biochemical oxygen demand (BOD), and total suspended solids (TSS) are calculated based upon OCSD’s fiscal year budget for treatment and disposal costs and the 1996 Wastewater Treatment and Disposal agreement. The FY 2011-11 rates are decreased 8.53% over the FY 2010-11 rates, due to the 8.53% decrease in OCSD’s total proposed FY 2011-12 treatment and disposal costs. The rates calculated for each constituent for FY 2011-12 for wastewater discharge are: Flow $146.43 BOD $224.61 TSS $333.39 These rates are separate from the rates charged for additional capacity purchases by SAWPA. PRIOR COMMITTEE/BOARD ACTIONS June 23.2010 - Adopted Resolution No OCSD 10-09 Establishing Use Charges for the FY 2010-11 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. June 25, 2009 - Adopted Resolution No OCSD 09-08 Establishing Use Charges for the FY 2009-10 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. Page 2 June 25, 2008 - Adopted Resolution No OCSD 08-09 Establishing Use Charges for the FY 2008-09 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. June 27, 2007 - Adopted Resolution No OCSD 07-15 Establishing Use Charges for the FY 2007-08 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority. ADDITIONAL INFORMATION None. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A Date of Approval Contract Amount Contingency N/A N/A N/A Enc.: Resolution No. OCSD 11-XX JDR:LT:MW:AB:jmf 1 RESOLUTION NO. OCSD 11-XX ESTABLISHING USE CHARGES FOR THE 2011-12 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY (“SAWPA”) A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING USE CHARGES FOR THE 2011-12 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT WITH THE SANTA ANA WATERSHED PROJECT AUTHORITY (“SAWPA”) WHEREAS, the Board of Directors has approved the Wastewater Treatment and Disposal Agreement with the SANTA ANA WATERSHED PROJECT AUTHORITY (“SAWPA”); and, WHEREAS, said agreement provides for payment of Disposal Costs for the measured and sampled flow of Wastewater discharged from SAWPA’s SARI Service Area to Districts’ facilities; and, WHEREAS, said agreement provides for adjustment of said Disposal Costs on an annual basis. NOW, THEREFORE, The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1. That pursuant to Section C4 of the Wastewater Treatment and Disposal Agreement, the 2011-12 fiscal year charges for Disposal Costs are hereby established as follows: For Flow: $ 146.43 per million gallons of flow For Biochemical Oxygen Demand: $ 224.61 per thousand pounds For Total Suspended Solids: $ 333.39 per thousand pounds PASSED AND ADOPTED at a regular meeting held June 22, 2010. ________________________________ Chair ATTEST: ___________________________ Clerk of the Board Page 1 ADMINISTRATION COMMITTEE Meeting Date 06/08/11 To Bd. of Dir. 06/22/11 AGENDA REPORT Item Number 6 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: Proposed Revisions to FY 2011-12 Budget. GENERAL MANAGER'S RECOMMENDATION Approve the proposed revisions to the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2011-12, as follows: Originally Proposed Adopted Budget Revised Budget FY 2011-12 FY 2011-12 Operations & Maintenance $156,090,770 $152,545,540 Capital Improvement Program 122,423,000 129,169,900 Debt/COP Service Re-Purchase of Excess Capacity 97,052,940 29,690,000 92,162,910 29,690,000 General Liability and Property Self-Insurance 1,606,200 1,606,200 Worker's Compensation Self Insurance 550,000 550,000 TOTAL $407,412,910 $405,724,550 SUMMARY Developing a two-year budget increases efficiencies and provides a longer planning horizon. This update represents known revisions to the second year of the two-year budget. The FY 2011-12 Proposed Revised Budget is enclosed for the Committee's consideration. The Budget has been presented to the Operations Committee at the regular June meeting in order to allow each Standing Committee an opportunity to review the proposal prior to the June Board meeting. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Administration Committee to recommend approval. The Administration Committee is requested to recommend that the Board of Directors approve this budget. http://sharepoint/gm/board/Agenda Report Form Library/09.Budget Revision FY11-12.docx Revised: 06/04/03 Page 2 PRIOR COMMITTEE/BOARD ACTIONS The Board approved the FY 2010-11 and FY 2011-12 Two-Year Budget for the period July 1, 2010 through June 30, 2012, in June 2010. Budget overviews were presented to the Administration and Operations Committees in June 2011. ADDITIONAL INFORMATION None. ATTACHMENTS 1. Proposed FY 2011-12 Revised Budget JDR:LT:MW:jf I Orange County Sanitation District, California Budget Update Fiscal Year 2011–12 Mission Statement “We protect public health and the environment by providing effective wastewater collection, treatment, and recycling.” GFOA Budget Presentation Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Orange County Sanitation District, California, for its biennial budget for the fiscal year beginning July 1, 2010. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. Table of Contents OCSD Service Area ........................................................................................................................... i Board of Directors ............................................................................................................................ ii Board Committees ........................................................................................................................... iii Orange County Sanitation District Organization Chart ................................................................... iv Administrative Officials .................................................................................................................... v Message from the General Manager ............................................................................................. vi Finance Summary ............................................................................................................ 1 Financial Overview & Budgetary Issues ........................................................................................... 2 Where the Money Comes From ...................................................................................................... 6 Funding Sources by Category ......................................................................................................... 6 Where the Money Goes ................................................................................................................... 8 Funding Uses by Category .............................................................................................................. 8 Strategic Planning ........................................................................................................ 10 Capital Improvement Program Overview ................................................ 17 Debt Financing Program ......................................................................................... 19 Operating Expenses .................................................................................................... 20 Departments ...................................................................................................................... 24 Summary ........................................................................................................................................ 24 Office of the General Manager ...................................................................................................... 26 Human Resources ......................................................................................................................... 28 Administrative Services ................................................................................................................. 30 Facilities Support Services ............................................................................................................. 32 Engineering .................................................................................................................................... 34 Operations and Maintenance ........................................................................................................ 36 Appendix Cash Flow Projection .................................................................................................................... A-2 Capital Improvement Program Summary ..................................................................................... A-4 Project Summary .......................................................................................................................... A-5 Capital Improvement Expenditure Graphs ................................................................................... A-6 Summary of Capital Requirements ............................................................................................... A-7 New Project Descriptions ........................................................................................................... A-14 Capital Equipment Budget Summary ......................................................................................... A-16 Capital Equipment Budget Detail ............................................................................................... A-18 Listing of Proposed Purchases Over $100,000 .......................................................................... A-19 Self-Funded Insurance Plans ...................................................................................................... A-20 Historical Staffing Summary ....................................................................................................... A-21 Historical Staffing Detail ............................................................................................................. A-22 Appropriations Limit ................................................................................................................... A-31 Miscellaneous Statistics ............................................................................................................. A-32 Wastewater Treatment Process OCSD Service Area i OCSD Board of Directors ii Agency/City Active Director Anaheim .................................................................... Harry Sidhu Brea ........................................................................... Roy Moore Buena Park ................................................................ Fred Smith Cypress ..................................................................... Prakash Narain Fountain Valley .......................................................... Larry Crandall – Chairman Fullerton .................................................................... Sharon Quirk-Silva Garden Grove ............................................................ Bill Dalton Huntington Beach ..................................................... Joe Carchio Irvine .......................................................................... Jeffrey Lalloway La Habra .................................................................... Tom Beamish La Palma .................................................................... Mark Waldman Los Alamitos ............................................................. Troy Edgar – Vice Chairman Newport Beach ......................................................... Steven Rosansky Orange ...................................................................... Jon Dumitru Placentia .................................................................... Constance Underhill Santa Ana .................................................................. Sal Tinajero Seal Beach ................................................................ Michael Levitt Stanton ...................................................................... David Shawver Tustin......................................................................... John Nielsen Villa Park .................................................................... Brad Reese Yorba Linda ............................................................... John Anderson Sanitary/Water Districts Costa Mesa Sanitary District .................................... James M. Ferryman Midway City Sanitary District ................................... Joy L. Neugebauer Irvine Ranch Water District ....................................... John Withers County Areas Member of the Board of Supervisors ....................... Janet Nguyen OCSD Board Committees iii Steering Committee Larry Crandall, Board Chair Troy Edgar, Board Vice Chair Tom Beamish, Operations Committee Chair John Anderson, Administration Committee Chair John Nielsen Brad Reese John Withers Administration Committee John Anderson, Chair Brad Reese, Vice Chair Joe Carchio Jon Dumitru Jeffrey Lalloway Prakash Narain Janet Nguyen Sharon Quirk-Silva Sal Tinajero Mark Waldman John Withers Larry Crandall, Board Chair Troy Edgar, Board Vice Chair Operations Committee Tom Beamish, Chair John Nielsen, Vice Chair Bill Dalton James M. Ferryman Michael Levitt Roy Moore Joy L. Neugebauer Steven Rosansky David Shawver Harry Sidhu Fred Smith Constance Underhill Larry Crandall, Board Chair Troy Edgar, Board Vice Chair GWR System Joint Cooperative Steering Committee Larry Crandall James M. Ferryman Mark Waldman Sharon Quirk-Silva (Alternate 1) Tom Beamish (Alternate 2) Constance Underhill (Alternate 3) Organization Chart iv General Counsel Office Board of Directors General Manager Operations & Maintenance –Operations & Maintenance Administration –Plant No. 1 Operations –Plant No. 2 Operations –Mechanical & Reliability Maintenance –Instrumentation & Electrical Maintenance –Environmental Laboratory & Ocean Monitoring Engineering –Engineering Administration –Planning –Project Management Office –Engineering & Construction –Asset Management –Environmental Compliance Facilities Support Services –Facilities Support Services Administration –Equipment / Rebuild –Facilities Engineering –Collection Facilities Administrative Services –Administrative Services –Financial Management –Contracts, Purchasing & Materials Management –Information Technology –Risk Management General Management Administration –General Management Administration –Board Services –Public Affairs Human Resources –Human Resources Administration –Labor & Employee Relations –Employee Development & Training Administrative Officials v Management Team General Manager ........................................................................................................ James D. Ruth Assistant General Manager .................................................................................... Robert P. Ghirelli Assistant General Manager/Director of Engineering ........................................... James D. Herberg General Counsel ............................................................................................................... Brad Hogin Director of Finance and Administrative Services ....................................................... Lorenzo Tyner Director of Human Resources .................................................................................. Jeffrey T. Reed Director of Facilities Support Services ............................................................ Nicholas J. Arhontes Director of Operations & Maintenance ................................................................. Edward M. Torres Message from the General Manager vi June 2, 2011 Honorable Chair and Board of Directors: I am pleased to submit this update to the Orange County Sanitation District (OCSD) 2011-12 approved operating budget and capital improvement program. This document provides a framework for District activities during the second year of the adopted two-year budget for Fiscal Years 2010-11 and 2011-12 and serves as a source of information for the District’s Board of Directors, and our employees and ratepayers. This is an important time for the District. During the short two-year timeframe of this budget, we will complete our half-billion dollar upgrade to full secondary treatment ensuring that the water going to the ocean and the Groundwater Replenishment System is of the highest quality. As we approach the next year, we are focused on how our business is changing and adapting. In preparation, we spent much of the year retooling, refocusing and restructuring OCSD. In the summer of 2010, we initiated an effort known as the Beyond 2012 Strategic Planning Framework to guide all future planning and more tightly integrate our priorities, strategic planning and budget implementation. Working with the executive team the General Manager solicited input from OCSD’s managers then held a workshop with the Board of Directors on October 20, 2010. At this workshop, the Board members discussed and deliberated changes and additions to the plan. The plan was then unanimously approved by the Board. This effort provided a foundation for our updated Five-Year Strategic Plan. Presented to the Board in December 2010, the plan summarized the District’s Mission and Vision statements, Levels of Service, and Business Plan and focused on Full-Cost Recovery to ensure a fair share recovery of costs for services. As a result of these strategic efforts, this budget adds additional emphasis to certain key areas including:  Operations Study The Plan of Secondary Treatment (POST) is being developed to provide a road map for optimizing the operation and maintenance of the five secondary treatment processes, considering factors such as regulatory compliance, GWRS requirements, staffing demands, costs, and control of pollutants of emerging concern. In order to gather and refine essential data, we completed workshops with a diverse group of internal stakeholders. The final report should be finalized by early July 2011.  Biosolids management Staff will aggressively monitor the commissioning of the Enertech facility to ensure it is meeting our needs. We will implement the board-approved OpenCel research project to evaluate its effectiveness in reducing the volume of biosolids produced while increasing gas production, and evaluate other opportunities to ensure long-term, sustainable options are available for managing our biosolids.  Sustainable energy production Staff will focus on achieving sustainable energy production through the implementation of AQMD- approved engine emission controls, commissioning of our fuel cell demonstration project, completion of an engineering feasibility analysis of alternative energy options, and actions needed to comply with AB 32 greenhouse gas requirements. 2011–12 Budget Update vii  Chemical Optimization As the District spends more than $15 million annually on chemicals, staff will complete a comprehensive review of our chemical usage and identify opportunities to optimize disinfection, chemical availability, odor control in the treatment plants and collection system, and alternative approaches (such as super oxygenation).  SARI Line relocation We are working with the County of Orange, Army Corps of Engineers, and SAWPA to complete the relocation of the Santa Ana River Interceptor (SARI) Line. Staff will be diligent in protecting OCSD interests on our $72 million dollar construction loan to the County of Orange. Bids should be awarded by the Orange County Board of Supervisors in July 2011. The $406 million budget ($155m in operating, $129m in capital, $92m in debt service, $30m in other agency costs) addresses rising treatment and chemical costs, aging infrastructure and increased regulatory requirements. There is a $1.4 million reduction from the 2011-12 Budget previously approved June 2010. With our revised organizational focus and support of new initiatives, this budget recognizes our austere times and focuses on the efficient use of our existing resources and improved organization to more fully support our mission and core business of treating sewage. OCSD provides wastewater treatment, sewer and facilities maintenance, ocean monitoring and many other services with residential user fees averaging $22 per month, one of the lowest rates in the state without any reduction in service levels. We continue to serve our 2.5 million residents and businesses by processing of 210 million gallons of wastewater each day without adding staff and holding the line on costs. In fact, the proposed staffing level is less than it was five years ago when I first came to the District. I believe that this budget update fully supports the goals included in the District’s Strategic Plan and positions us well to address the challenges ahead. I look forward to another dynamic and productive year of leading the organization. James D. Ruth General Manager 2011–12 Budget Update 1 Finance Summary Financial Summary Overview & Budgetary Issues 2 Budget Overview The District’s proposed 2011-12 operating and capital improvement budget totals $405.8 million, or 0.4 percent below what was approved last year as the second year of the adopted two-year budget. The decrease in the 2011-12 budget is primarily attributable to reductions in various areas of the operating budget reflecting lower cost increases than previously anticipated. The budget continues to reflect the agency’s ongoing efforts to streamline operations. Staffing levels are proposed to be reduced by four full-time equivalent (FTE) positions or 0.6 percent below the level originally approved while operational service levels increase as secondary treatment facilities continue to come into service to meet full secondary treatment standards by December 2012. This increase in efficiency will be achieved in part due to the major “Beyond 2012” staffing reorganization that was begun in August 2010. The District’s Capital Improvement Program (CIP) budget for Fiscal Year 2011-12 is $129.2 million. This CIP budget finances collection system, joint works treatment and disposal system improvement projects. The $6.8 million increase from the originally proposed budget is attributable to the timing of construction cash outlays as we meet our infrastructure needs. Financing The District uses long-term borrowing (Certificates of Participation [COP]) for capital improvements that cannot be financed from current revenue. Before any new debt is issued, the impact of debt service payments on total annual fixed costs is analyzed. Debt financing of $165 million is forecasted over the next six years to assist in the funding of the $1.9 billion in capital improvements required over the next ten years. New money debt was issued in the amount of $157 million in 2010-11 and no new debt issuances are scheduled for 2011-12. Staffing Reflecting the organization’s commitment to providing service at the lowest costs, the budget includes a reduction of 4 full-time equivalent (FTE) positions in 2011-12 to an authorized staffing level of 637 FTE positions. This staffing level continues to reflect a significant reduction from the Fiscal Year 1995-96 approved staffing level of 678 FTE positions. Personnel costs will escalate due to increases in group insurance and retirement premiums, as well, as provisions of current bargaining agreements. The District will continue to effectively manage these expenses with approximately 24.1 percent of the budget allocated to employee costs. Level of Treatment The agency’s two treatment plants, located in Fountain Valley and Huntington Beach, process about 210 million gallons of wastewater each day generated by approximately 2.5 million people in central and northwest Orange County. The proposed budget to operate, maintain and manage our sewage collection, treatment and disposal system in 2011-12 is $154.7 million. The cost per million gallons of wastewater treated, (an industry-wide performance measurement), is expected to increase in Fiscal Year 2011-12 to $2,019, a $26, or 1.3 percent increase over the previous 2011-12 projection of $1,993 due to lower projected flows, as total operating costs are being proposed at a reduction of $3.5 million. To eliminate most bacteria from being released from the ocean outfall, in Fiscal Year 2002-03 the District began using chlorine bleach to disinfect the effluent and then applying sodium bisulfite to remove remaining chlorine prior to releasing the treated wastewater to the ocean. To protect the animal life living in the ocean, the District continues to take great measures to limit the chlorine residual to essentially non-detectable levels. This mode of disinfection is anticipated to continue for the short-term, possibly two years, while OCSD studies, designs and constructs permanent facilities, and considers alternate disinfection technologies. Beginning in Fiscal Year 2002-03, the addition of disinfection treatment required an annual outlay for additional chemicals in the operating budget. The cost for disinfection is projected to be approximately $3.6 million in Fiscal Year 2011-12. 2011–12 Budget Update 3 Capital Improvement Program (CIP) The total CIP cash flow outlay for Fiscal Year 2011-12 is being proposed at $129.2 million, up $6.8 million from the previously approved 2011-12 budget due mostly to deferral of CIP projects from 2010-11 into 2011-12. Over the next 10 years, the District’s Capital Improvement Program will:  Rehabilitate the existing headworks, primary treatment, outfall pumping, solids handling facilities, and the utility systems at both treatment plants.  Replace or rehabilitate nine of OCSD’s outlying pumping stations, and rehabilitate and upgrade 26 trunk sewer improvement projects.  Optimize the production of power and biosolids at each of the treatment plants.  Achieve secondary treatment standards by December 2012. Five Projects Drive the CIP Over the next 12 months, secondary upgrade projects required to achieve secondary treatment standards will continue to significantly impact the CIP. The New Plant No. 1 Secondary Treatment System is expected to require outlays of $8.9 million in 2011-12. Two of the larger Collection System related projects in the 2011-12 proposed budget are the $31.7 million Bitter Point Pump Station Replacement with 2011-12 proposed cash outflows of $9.0 million and the $22.1 million Magnolia Trunk Sewer Rehabilitation with 2011-12 proposed cash outflows of $9.7 million. Two other projects will also have a sizeable impact on the CIP over the next year. The Sludge Digester Rehabilitation at Plant No. 1 and the Headworks Improvements at Plant No. 2 projects are expected to require $16.6 million and $4.9 million, respectively. Together, these five projects represent 38 percent of the total Fiscal Year 2011-12 proposed CIP cash flow budget of $129.2 million. Groundwater Replenishment (GWR) System The OCSD Strategic Plan includes water reclamation. With the Orange County Water District (OCWD), we began operating the Groundwater Replenishment (GWR) System, the nation’s largest water reclamation project, in January 2008. The GWR System currently reclaims 70 million gallons of water a day, delaying the need to build a second outfall which could cost more than $200 million. OCSD and OCWD equally shared the expenses of Phase I of the project. OCSD received approximately $44 million in Federal and State grants to offset part of the Sanitation District’s total costs. Phase II will increase the production of reclaimed water to 100 million gallons a day. The project, which will be funded entirely by the OCWD, is anticipated to be completed in 2013. OCSD is directing all reclaimable flows to Plant No. 1 in support of providing maximum amounts of specification water for reclamation. Moving Towards Secondary Treatment In July 2002, the Board of Directors approved a change from the existing level of treatment, a blend of 50 percent advanced primary and 50 percent secondary treated wastewater, to secondary treatment standards. The reasoning behind the decision to move to secondary standards included (1) the remote possibility that bacteria from the ocean outfall may at times reach the shoreline, (2) upgraded treatment will aid additional water reclamation with the Orange County Water District, (3) and the public’s clearly stated preference for upgrading wastewater treatment at this time. The 2011-12 CIP includes three projects totaling $623 million to upgrade the District’s treatment plants to meet secondary treatment standards. Construction of the facilities to meet secondary treatment standards is currently on track to be completed by December 31, 2012. Sewer Service Fee Increases The proposed 2011-12 single family residential rate, the underlying basis for all sewer rates, is $267. This proposed rate by the District is still well below the State’s annual average sewer rate of $406, according to a 2008 survey of 726 agencies in California. Financial Summary Overview & Budgetary Issues 4 Operating Budget Increase The operations budget for the collection, treatment, and disposal of wastewater is proposed at $154.7 million, a $3.5 million, or 2.2 percent decrease from the previously approved 2011-12 budget. Although individual expenses will increase or decrease slightly, the overall decrease to the operating budget is primarily attributable to six specific areas: Personnel Costs – $1.3M Although staffing is being proposed at 637 full time equivalent (FTE) positions, below the previously approved 641 FTEs for 2011-12, costs will increase $1.3 million. This increase is partially a result of existing collective bargaining agreement impacts, including health and welfare cost increases. The other significant increase in personnel costs is the $0.6 million (3 percent) increase in retirement premiums. This increase reflects revised actuarial assumptions and low interest earnings in prior years. The increases in retirement premiums reflect the rising costs occurring throughout California. Operating Materials & Supplies – ($2.3M) As the requirement for better quality effluent increases, so does the need for chemicals to treat the region’s wastewater. Operating materials and supplies are proposed to decrease, however, primarily because combined increases in chemical coagulants, odor control, and disinfection are expected to be lower than originally anticipated. Contractual Services – ($1.0M) The major component of this category is biosolids removal and transportation costs. These costs continue to rise however, cost increases in this area were less than previously anticipated. Utilities – ($1.7M) There are reductions identified in natural gas utilization because Plant 2 Central Generation Operations automation controls have been successful in reducing natural gas usage. There is also a decrease in electricity costs related to a lower projected energy rate increase. Repairs & Maintenance – $900,000 This expense category includes parts and services for repairing aging treatment plant and collection facilities, and reflects base budgets for equipment maintenance, as well as out-sourced annual service contracts and maintenance agreements. The Fiscal Year 2011-12 proposed budget increase includes $504,000 for aeration deck crack repairs at Plant 2, and $363,000 for replacement of flexible disks in the Plant 1 aeration basin, in addition to increases in basic repairs and maintenance costs. Cost Allocation – ($900,000) Increase in cost allocation charges to the capital improvement program due to the Beyond 2012 reorganization and the concentration of work performed by the employees transferred to new divisions from the Operations and Maintenance Department. FY 2010-11 Approved FY 2011-12 Approved FY 2011-12 Proposed Revision $153M $158M $155M +3%-2% Operating Expenses Total budgeted operating and maintenance expenses will increase $2 million from FY 2010-11. 2011–12 Budget Update 5 Primary basins at OCSD Treatment Plant No. 2 taken by Plant Operator Paul Ward. Financial Summary Where the Money Comes From 6 Funding Sources by Category (in millions) Where the Money Comes From Other $11.9M 1.2% Interest $11.7M 1.2% Property Taxes $63.4M 6.5% Fees & Charges $285.1M 29.1% Debt Proceeds $0.0M 0.0% Beginning Reserves $607.0M 62.0% Category 2010-11 Approved 2011-12 Approved 2011-12 Updated Proposed Beginning Reserves $448.4 $488.4 $607.0 Service Fees 248.7 271.0 266.9 Permit User Fees 11.6 12.7 11.4 Capital Facilities Capacity Charges 6.5 6.8 6.8 Property Taxes 60.3 60.3 63.4 Interest 9.3 9.8 11.7 Other Revenue 5.6 11.6 11.9 Debt Proceeds 157.0 50.0 0.0 Total Funding Sources $947.4 $910.6 $979.1 Financial Summary Funding Sources by Category 7 Funding Sources by Category The District has a variety of revenue sources available for operating and capital expenses. The major revenue sources are as follows:  Beginning Balances  Service Fees  Industrial Waste Permit User Fees  Connection Fees  Property Taxes  Interest Earnings  Other Miscellaneous Revenue  Debt Proceeds Beginning Reserves – $607M As a result of its Reserve and Investment Policies, the District will begin the year with a balance carried forward from the previous year. General Service Fees – $267M User fees are ongoing fees for service paid by customers connected to the sewer system. A property owner, or user, does not pay user fees until connected to the sewer system and receiving services. Once connected, a user is responsible for his share of the system’s costs, both fixed and variable, in proportion to his demand on the system. These fees are for both Single Family Residences (SFR) and Multiple Family Residences (MFR). The proposed 2011-12 single family residential rate, the underlying basis for all sewer rates, is $267. This proposed rate by the District is still well below the State’s annual average sewer rate of $406, according to a 2008 survey of 726 agencies in California. Permit User Fees – $11M Large industrial and commercial properties that discharge high volumes or high strength wastewater are required to obtain a discharge permit and pay extra fees. These fees are for the owner’s share of the system’s costs, both fixed and variable, in proportion to the demand placed on the system. These fees are being reduced from the original FY 2011-12 budget of $12.7 million to $11.4 million due to the current recession. Capital Facilities Capacity Charges (CFCC) – $7M CFCC is a one-time, non-discriminatory charge imposed at the time a building or structure is newly connected to the District’s system, or an existing structure is expanded. This charge pays for District facilities in existence at the time the charge is imposed, or to pay for the construction of new facilities in the future that are of benefit to the property being charged. Property Taxes – $63M The County is permitted by State law (Proposition 13) to levy taxes at 1 percent of full market value (at time of purchase) and can increase the assessed value no more than 2 percent per year. The District receives a share of the basic levy proportionate to what was received in the 1976 to 1978 period less $3.5 million, the amount that represents the State’s permanent annual diversion from special districts to school districts that began in 1992-93. The District’s share of this revenue is dedicated for the payment of debt service. Interest Earnings – $12M Interest earnings are generated from the invest- ment of accumulated reserves consisting of a cash flow/contingency, a capital improvement, a renewal/ replacement, and a self-insurance reserve. Other Revenue – $12M Other revenue includes $8.4 million from the sale of additional capacity rights to the Santa Ana Watershed Project Authority. Debt Proceeds – $0M Certificates of Participation (COPs) are the District’s primary mechanism for financing capital projects. COPs are repayment obligations based on a lease or installment sale agreement. In 2011-12, the District is scheduled to issue no new money COPs to assist with the financing of the $129 million in capital outlays scheduled for this fiscal year. Financial Summary Where the Money Goes 8 Where the Money Goes Funding Uses by Category (in millions) CIP $129.2M 13.2% Ending Reserves $573.3M 58.6% Operating $154.7M 15.8% Debt $92.2M 9.4% Equity Sales $29.7M 3.0% Category 2010-11 Approved 2011-12 Approved 2011-12 Updated Proposed Capital Improvement Program $180.2 $122.4 $129.2 Debt Service 89.7 97.1 92.2 Operating Expenses 152.5 158.2 154.7 Equity Sales 36.6 29.7 29.7 Subtotal $459.0 $407.4 $405.8 Ending Reserves 488.4 503.2 573.3 Total Funding Uses $947.4 $910.6 $979.1 Financial Summary Funding Uses by Category 9 Funding Uses by Category The District budgets its funds in five distinct areas: Capital Improvement Program (CIP) In order to provide the appropriate level of service to the District’s rate payers, large capital improvements are required. The CIP provides for the management and implementation of these improvements. Debt Service This is the cost of issuing debt. Long-term debt financing allows the District to complete large multi- year capital projects by providing funds not always immediately available. Operating Expenses The proposed budget allocates resources to operate, maintain and manage our sewage collection, treatment and disposal system and for any associated administrative or technical requirements. Equity Sales In accordance with Amendment No. 2 to the Agreement for Purchase and Sale of Capacity Rights in Treatment, Disposal and Sewer Facilities between Irvine Ranch Water District and Orange County Sanitation District dated November 15, 1995, ownership is adjusted annually to reflect the current equity percentage ownership based on sewage flows. Reserves The District budgets for reserves for various potential needs including cash flow, operating contingencies, capital improvement, and replace- ment and catastrophic loss. The reserve levels are governed by District policy. New secondary treatment system facilities in construction at Plant No. 1. Strategic Planning 10 Introduction Driven by the mission, vision and core values of the Strategic Plan, OCSD continues aggressive efforts to meet the sanitation, health, and safety needs of the more than 2.5 million people we serve while protecting the environment where we live. Mission Statement The Mission Statement is the basic foundation that defines why we exist. “We protect public health and the environment by providing effective wastewater collection, treatment, and recycling.” Vision Statement Our Vision Statement supports the Mission Statement by expressing a broad philosophy of what the Orange County Sanitation District strives to achieve now and in the future in the delivery of services to our customers, vendors, other agencies, the general public, and each other.  Making decisions in an open and honest way to produce optimum financial, environmental and societal results.  Cooperating with other stakeholders to protect the ocean and regional water resources for the people we serve.  Beneficially recycling wastewater, biosolids and other resources using safe and effective processes and systems.  Developing the best possible workforce by providing employees with opportunities to advance their careers through enhanced growth, responsibility, and professional development. Core Values Our Core Values support the Mission and Vision Statements by expressing the values, beliefs, and philosophy that guides our daily actions. They help form the framework of our organization and reinforce our professional work ethic. Honesty, Trust and Respect We aspire to the highest degree of integrity, honesty, trust, and respect in our interaction with each other, our suppliers, our customers, and our community. Teamwork and Problem Solving We strive to reach OCSD goals through cooperative efforts and collaboration with each other and our constituencies. We work to solve problems in a creative, cost-effective and safe manner, and we acknowledge team and individual efforts. Leadership and Commitment We lead by example, acknowledging the value of our resources and using them wisely and safely to achieve our objectives and goals. We are committed to act in the best interest of our employees, our organization, and our community. Learning/Teaching – Talents, Skills and Abilities We continuously develop ourselves, enhancing our talents, skills, and abilities, knowing that only through personal growth and development will we continue to progress as an agency and as individuals. Recognition/Rewards We seek to recognize, acknowledge and reward contributions to OCSD by our many talented employees. Operating Philosophy The Orange County Sanitation District is a public agency that is successful by working as a team and by leveraging our efforts with other public agencies. We think like a business and act in the public interest, all the while emphasizing the ABC’s of our operating philosophy: Accountability We maintain accountability for our commitments and for our behavior. We use measurable short-term and long-term goals. We use methods that regularly check our collective and individual progress in achieving our commitments. We measure and expect honest, respectful, open and constructive behavior in ourselves and from the people with whom we work. Balance We achieve balance in what we do. Work matches our capacity to perform it. We look for economies of operation without sacrificing quality or causing unreasonable risk. We consistently perform our core work and meet our basic wastewater management responsibilities while being willing to take on new initiatives that improve environmental quality or service in the community we serve. Communication We promote timely and accurate communication with the many different people who make up our community of interest. Staff and management communicate freely, openly and honestly to solve problems and to achieve constructive change. 2011-12 Budget Update 11 We provide our Board of Directors with accurate and timely information about matters that impact their policy making and affect the wider interests of Orange County. We provide opportunities for the public, the media and our staff to become informed about our activities and to provide input during our deliberations. Risk Register During annual strategic level risk assessment and mitigation workshops, the Executive Management Team identifies weaknesses and threats and assesses strategic and organization-wide risks facing the District. The team also identifies mitigation measures that the District currently has in place, proposes additional mitigation measures that the District considers appropriate; and develops an action plan of responsibilities and timeframes for follow-up. The information generated from these workshops are compiled and documented within the District’s Risk Register. Several Strategic Plan long and short-term goals reflect mitigation measures. Several of the risks involve preparedness for uncontrollable events, such as terrorist attacks and natural disasters. Several are concerned with finance, and many are compliance-related. The 2011 Risk Register Update identified these as the top risks:  Financial crisis/difficult economy  Disaster and aftermath  Public sentiment against needed funds  Retirement of experienced employees The 2010 Risk Register Update identified these as the top opportunities:  Reorganize as people/facilities change – recognizes that a number of new facilities will soon be put to use at approximately the same time as a number of long-time employees may retire.  Hire good staff – refers to the opportunity to find and hire competent and experienced people during a time when many are available.  Focus on mission without other costly endeavors – refers to the potential to maintain focus on the District’s core mission without engaging in other activities which might add to the District’s costs. OCSD Long-Term Planning Long-Term Strategic Goals should be acceptable, flexible, measurable, motivating, suitable, under- standable, and achievable. The Long-Term Goals are the results the District seeks to achieve over a specified period, usually three to five years. The Risk Register contains several long- term concerns requiring short and long-term strategic planning. Several goals were completed in the last year:  Review Interagency Agreements  Strategic Business Plan and Business Accountability Charters  Enterprise Information Technology Strategic Plan  Chemical Supplies/Chemical Sustainability  Disposition of North County Yard Other interrelated, long-term goals will remain as the District continues to construct the facilities required to reach full secondary treatment at the end of 2012. As secondary treatment facilities are completed, more biosolids will be produced. New centrifuge/solids processing projects should improve dewatering and decrease the wet tons of biosolids hauled. Currently, the land reuse options are scarce and other new technologies that the District is planning will become the more available, more expensive, biosolids management options. The biosolids long-term goal will continue until a viable, cost-efficient, and effective method of reuse is available. Strategic Planning 12 Long-Term Goals Goals FY 2010-11 Progress SARI Line Relocation Staff continues to work in conjunction with the County of Orange and the Federal Government to relocate the Santa Ana River Interceptor Line by March 2013. Bids for construction of the project were received and reviewed, and an expected Notice to Proceed is anticipated in June 2011. Fuel Cell Evaluation The 300 kW demonstration unit was started up in FY 2010-11. In FY 2011-12, staff will evaluate cost feasibility of replacing or supplementing CGS engines with fuel cells, and in FY 2012-13, staff will evaluate performance and fuel clean up effectiveness of the unit. Biosolids Management Staff continues to monitor both opposition to land application in Kern County and Arizona, and availability of sustainable cost-effective alternatives. EnerTech was selected as a joint project for biosolids reuse, partnering with several agencies. Optimization of the facility is progressing after several unexpected operational problems. The recently completed 5-year research strategic plan identified several projects targeted at reducing the quantity of biosolids produced; this is scheduled for completion during FY 2011-12. Engine Emission Compliance The study to evaluate alternatives for complying with lower emission limits in the South Coast Air Quality Management’s Rule 1110.2. has been completed. The demonstration testing must also be completed, and then the negotiation of engine emission limits and schedule with SCAQMD. By FY 2013-14, the District will implement capital improvements or operations modifications in order to achieve compliance. Review Interagency Agreements OCSD and Santa Ana Watershed Project Authority (SAWPA) staff met frequently to discuss issues related to SARI line flows, rates, and long-term planning. After several meetings, the decision was made to follow the terms of existing agreements. OCSD and Irvine Ranch Water District (IRWD) staff finalized agreements on issues related to sewer charges, reserves, cash balances, biosolids costs, and odor control costs. New agreements are now in place for leasing solids processing capacity and calculating biosolids and chemical costs. A temporary agreement for additional IRWD flow is in process. Odor Control Minimizing odor complaints is a priority. Chemical addition in the collection system has increased. Plant odors will be contained within the treatment plant boundaries by completing Odor Control Projects at Plant 1 and Plant 2 by 2016. Projects P1-113 (Trickling Filters at Plant 1) and P2-102 (Solids Storage at Plant 2) have been designated to satisfy odor control compliance in these areas. These projects are scheduled to start design in 2012. Full-Cost Recovery Conduct a comprehensive review of the Sanitation District’s Urban Runoff Program to ensure a fair share recovery of costs for services. Local Sewer Services Local Sewer Transfers completed in 2010 are: Costa Mesa Sanitary District (3 miles); Irvine Ranch Water District (0.1 miles, along with review of 44 miles transferred in 2003); Tract 3709 near La Mirada (0.8 miles); City of Orange Phase I (4.4 miles); and City of Anaheim (0.5 miles). Planned transfers include: City of Tustin (174 miles); City of Newport Beach (20 miles); Fairgrounds to Costa Mesa Sanitary District; and City of Orange Phase II (7.5 miles). 2011-12 Budget Update 13 Strategic Initiatives – Short-Term Goals There were several Short-Term Goals that supported the Long-Term Strategic Goals of the District. The updates and the completed portions of several Long-Term Goals are included in the following table. Status Short-Term Goals Ongoing Plan and Maintain a Sustainable Capital Improvement Program –The team continued work on the original plan. Tasks complete include: issue a call for new projects and prepare materials for Manager and EMT review and prioritization of new requests; work on validating all CIP project budgets and scopes of work with updated estimated cost at completion for the entire program; and complete ASCE Peer Review of our CIP management program and present findings to the Board of Directors. Ongoing Disinfection of Final Effluent –Develop a cost-effective program to sustain protection of public health associated with bacteria in the effluent and incorporate program elements into our NPDES Permit. Ongoing Ongoing Leadership Development –Maximize the development of a pool of dedicated and talented employees ready to lead OCSD into the future. Complete Management System for Environmental Compliance –Implement a management control system for environmental compliance information that incorporates a dashboard-style report. Complete Climate Change/Greenhouse Gases –Complete development of statewide emission inventory protocol for publicly-owned treatment works and submit mandatory emission inventory to the California Air Resources Board annually. Complete Contaminants of Potential Concern (CPC)–Complete three phase testing and analysis of 550+ CPC, prepare report on findings and recommendations, develop initial source control strategy if there are CPCs identified that require control. Complete Complete Facilities Master Plan Update –Complete a comprehensive update of the Facilities Master Plan and obtain Board approval. Complete Sustainable Biosolids Program –Evaluate option of processing some of biosolids at the City of Los Angeles Terminal Island demonstration well; Evaluate the feasibility of deep injection/methane recovery including commissioning a study of the geological formations below Plants 1 and 2, and availability and acceptability of any existing wells; Complete new in-county Compost Take-Back Program Plan strategy. Complete Succession Plan - Implement the succession management plan including management training and the creation of a Leadership Academy. Complete Enterprise Information Technology Strategic Plan –Develop and publish a three year Information Technology Strategic Plan based on the master OCSD strategic plan. Complete Improve the Sanitation District Security –Provide long-term security enhancements at both treatment plants and within OCSD’s Collections System. Complete Safety and Health Strategic Plan –Develop and implement a Safety and Health Strategic Plan for all OCSD activities. Complete Human Resources Strategic Plan –Design, develop and implement human resources policies, practices systems and tools to ensure OCSD has a workforce that meets future needs of OCSD and the public it serves. Strategic Planning 14 Levels of Service The Levels of Service included in the following tables support the strategic vision, mission, ethics, goals, and initiatives of the District and include key performance indicators of the Operational targets. Level of Services Target Accomplishments for FY 2010-11 and Accomplishments for FY 2010-11 Environmental Stewardship: OCSD will protect public health and the environment. FY 10–11 Target FY 10–11 Results Provide capacity to collect and treat dry weather urban runoff 4 mgd 1.1 mgd Maximum off-site odor impact (in D/T*) Reclamation Plant No. 1 Treatment Plant No. 2 14 D/T 17 D/T 42 D/T 48 D/T Air emissions health risk to community, cancer risk per 1 million Employees <10 9 Permit compliance (air, land, and water) 100% 99% OCSD will be a good neighbor. FY 10–11 Target FY 10–11 Results Odor complaint response Treatment Plants within1 hour Collection System within 1 working day 100% 100% 100% 100% Odor complaints Reclamation Plant No. 1 Treatment Plant No. 2 Collection System 32 4 34 8 6 14 Restore collection service to customer within 8 hours 100% 100% Respond to collection system spills within 1 hour 100% 100% 2011-12 Budget Update 15 Business Principle: OCSD will exercise sound financial management. FY 10–11 Target FY 10–11 Results COP service Principal and Interest < O&M expenses <O&M expenses Annual user fees Sufficient to cover all O&M requirements Sufficient to cover all O&M requirements Annual increase in collection, treatment, and disposal costs per million gallons <10% 0.15% Annual reserve level over adopted reserve policy level +/-5% -0.0046% OCSD will be responsive to our customers.FY 10–11 Target FY 10–11 Results Respond to public complaints or inquires regarding construction projects within 1 working day >90% >90% New connection permits processed within one working day >90% >90% Strategic Planning 16 Wastewater Management: OCSD will provide a safe reliable effluent for recycling. FY 10–11 Target FY 11–11 Results Concentration of emerging chemical constituents of concern in Plant No. 1 secondary effluent NDMA =< 150 ppt 1,4 Dioxane =< 5 ppb NDMA = 24.9 ppt 1,4 Dioxane =2.58 ppb Meet GWRS specification requirements for Plant 1 secondary effluent (NTU) 5 3.4 Thirty-day geometric mean of total coliform bacteria in effluent after initial dilution <1,000 mpn 860 mpn Industrial compliance with permits to discharge into OCSD sewers >90% permit compliance 100% permit compliance Meet secondary treatment standards BOD 100 mg/L TSS 55 mg/L BOD 32 mg/L TSS 26 mg/L OCSD will manage flows reliably. FY 10–11 Target FY 10–11 Results Frequency of use of emergency one-mile (78-inch diameter) outfall 0 per year during dry, less than once per 3 years in peak wet weather 0 Sanitary sewer spills per 100 miles < 2.1 < 2.1 Contain sanitary sewer spills within 5 hours 100% 100% OCSD effluent will be recycled. FY 10–11 Target FY 10–11 Results Provide up to 104 mgd specification effluent to the Groundwater Replenishment System 104 mgd 77.5 mgd OCSD will implement a sustainable biosolids management program. FY 10–11 Target FY 10–11 Results National Biosolids Partnership Certification for Biosolids Environmental Management System Maintain NDB Certification Maintained Percent of biosolids recycled >95% recycled <5% to landfill 100% recycled 0% to landfill Workplace Environment: OCSD will take care of our people. FY 10–11 Target FY 10–11 Results Training hours per employee 45 per year 58 Employee injury incident rate 5.2 Industry Average 3.1 Mandatory OSHA training requirements 100% 95% Hours worked since last Lost Work Day 1,000,000 310,000 Lost Work Day Rate 5.2 2.6 Capital Improvement Program Overview 17 CIP Budget Request Summary This is an update to the Fiscal Year 2010-12 two-year budget. In preparation for the 2011-12 update, the District’s Board of Directors reviewed the proposed changes to the CIP to gain an understanding of the impact from the CIP to the current rate structure program. The CIP includes three projects totaling $623 million to upgrade the District’s treatment plants to meet secondary treatment standards. Implementation of secondary treatment standards is scheduled to be completed by December 31, 2012. In conjunction with preparation for the 2008-10 budget, the District staff conducted strategic planning workshops with the Board of Directors to layout a capital program to deliver the levels of service desired by the Board of Directors. These levels of service are included in the District’s Five- Year Strategic Plan. No new CIP projects were added as part of the District’s Five-Year Strategic Plan update. This budget update also includes the identification of 2 new study projects. These study projects are based on the District’s condition assessment program and asset management planning. These CIP studies increase the amount of the CIP by $0.37 million. However, these projects will be funded from the future rehabilitation, renewal, and replacement line item in OCSD’s existing budget and will not impact OCSD user rates. In addition, District staff has reviewed each ongoing CIP project to ensure that the scope of the project is appropriate, and that the cost estimates are accurate. The validated CIP includes 95 large capital projects and 50 special projects with a 20-year expenditure of $1.815 billion. This total represents a $35.6 million increase from the 2010-12 CIP estimate. The proposed 2011-12 CIP budget is organized by treatment and collection system processes and areas. The funds requested for the current cash flow budget total $129.2 million, a decrease of 28 percent from last year’s cash flow request of $179.6 million. The current year cash flow is part of an overall total cost of $2.802 billion for active projects. Following is a chart for the 2011-12 Proposed CIP Cash Flows and the total Project Costs for all proposed projects, by project phase, in millions: Total 2011-12 Project Current Status Cash Flow Costs Future $0.0 $1,041.2 Planning 17.9 196.5 Design 15.9 373.5 Construction 93.3 1,174.8 Capital Equipment 2.1 16.0 Total $129.2 $2,802.0 There are currently 36 projects in the Planning Phase with proposed capital outlay spending in 2011-12. Two of the larger 2011-12 cash flow projects in the Planning Phase are the Sludge Dewatering and Odor Control at Plant 2 and the Cengen Emissions Control Project with current year projected expenditures of $2.94 million and $2.90 million, respectively. A total of $134.1 million in capital outlay, currently listed within the Planning Phase, is being projected for future budgets based on the capital improvement needs that are identified through the 2009 Facilities Master Plan and the CIP Validation Study. There are currently 14 projects in the Design Phase with proposed capital outlay spending in 2011-12. Two of the larger projects in the Design Phase are the Sludge Thickening Dewatering and Odor Control at Plant 1 Project and the Solids Thickening and Processing Upgrades Project with projected current year expenditures of $3.96 million and $3.17 million, respectively. There are currently 39 projects in the Construction Phase with proposed capital outlay spending in 2011-12. The two most significant projects in the construction phase are the Digester Rehabilitation at Plant 1 and the New Secondary Treatment System at Plant No. 1 with projected current year expenditures of $16.58 million and $8.91 million, respectively. Standard contingency factors have been applied to improve budgeting. The rates of 20, 20, and 10 percent have been applied respectively to the estimates made during the project development, design, and construction project phases. This reflects standard practice for estimating construction project costs. Following within the appendix are descriptions and justifications for the capital improvement projects which are new in this Fiscal Year 2011-12 budget update. They give the reader a brief overview of each project, the budget for the total project, and any potential changes in the operational budget resulting from the implementation of the project. For a description of ongoing projects, see Section 8 of the Fiscal Years 2010-11 and 2011-12 Budget. CIP Overview 18 Each project in the CIP went through an extensive validation and prioritization process. Projects have been prioritized based on risk exposure if the project was deferred. Projects that would present a higher risk if they were delayed are given a higher priority. The CIP budget process is continually improved and further refined as the District improves the CIP project management controls system. The Project Management Controls System staff work with the project managers and management throughout the year to manage the scope, schedule, budget, risk and other key project indicators for each project. The information is collected monthly and compiled in the OCSD Project Control System website. This information is then readily available during the budgeting process to minimize the time and effort needed to prepare and update the CIP portion of the overall budget. The construction of Trickling Filters at Treatment Plant No. 2 was completed in December 2010, two months ahead of the EPA consent decree milestone due date. Debt Financing Program 19 Debt Financing Due to the magnitude of identified future annual capital and operations and maintenance expenditures, it is necessary that the District utilize debt financing to meet its total obligations. Debt financing allows the District to meet projected construction schedules while achieving the lowest possible user fees, as well as long-term stability in future sewer service fee rates. Certificate of Participation (COP) The primary debt mechanism used is Certificate of Participation (COP). COPs are repayment obligations based on a lease or installment sale agreement. The COP structure was selected over other structures because COPs are not viewed as debt by the State of California, as the purchaser does not actually receive a “bond,” but rather a share in an installment sale arrangement where the District serves as the purchaser. COPs can be issued with fixed or variable interest rates. Fixed-rate debt can be either traditional or synthetic in form:  Fixed-Rate Debt traditionally has a final maturity between 20 and 30 years from the date of issuance. Generally, principal is amortized annually. Principal maturing in early years typically has a lower interest rate (“coupon”) than later maturities. This structure typically produces a level debt service.  Synthetic Fixed-Rate Debt: long-term, variable- rate debt can be issued and then the interest component can be swapped to a fixed rate. This form of fixed-rate debt achieves a balance between short and long-term interest costs and is frequently a less expensive form of debt. In some markets, this form of fixed-rate debt is less expensive to issue than the more traditional form of fixed-rate debt described above. Variable-rate debt can also be traditional or synthetic:  Variable-Rate Debt traditionally has either a long or short nominal maturity, but the interest rate resets periodically. Typically, the intervals for interest rate resets are daily, weekly or monthly, but any period is possible.  Synthetic Variable-Rate Debt as described above for fixed-rate debt, variable-rate debt can be created from a fixed-rate issue by means of a floating-rate swap. The maximum level of variable rate obligations incurred by any District should not exceed the level of invested reserves available to that District. The District currently has outstanding synthetic fixed-rate and fixed-rate COPs of $1.213 billion and variable-rate COPs of $194.0 million, for a ratio of 86:14. The District Maintains Its AAA Rating The District’s bond rating is “AAA” from both Standard & Poors and Fitch Ratings. An “AAA” Rating is the highest for a government agency. In order to maintain this rating, the District adheres to its 2001 Debt Policy and coverage ratios requirements. This Board- adopted policy serves as the agency’s guide in the management of existing debt and in the issuance of future debt. Debt Ratios The District does have contractual covenants within the existing COP agreements which require minimum coverage ratios of 1.25. The minimum coverage ratio is the ratio of net annual revenues available for debt service requirements to total annual debt service requirements for all senior lien COP debt. The coverage ratio for senior lien COP debt is being proposed at 2.31 for Fiscal Year 2011-12. Debt Financings In Fiscal Year 2011-12, no new COP debt issuances are being proposed. The proposed CIP budgeted cash outlays of $129.2 million in this fiscal year would be funded from reserves and other revenue sources. Operating Expenses 20 Salaries, Wages & Benefits – $97.6M Salaries & Wages – This category includes salaries for 637 full time equivalent (FTE) staff positions as well as Directors’ pay. The vacancy factor applied for the budget update was 3 percent based on trend information. Provision has been made in these salary projections in order to comply with the terms of the most recently adopted MOUs. Retirement – The District's employees are members of the Orange County Employees' Retirement System (OCERS). Information from OCERS indicates that an increase in rates is expected. The employer’s required contribution rate has been increased from 25.10 percent to 25.68 percent. In addition, the District will pay 3.5 percent on behalf of each employee. Group Insurance – Includes the District’s share (approximately $14,700 per employee) of employee medical plan benefits for the indemnity plan, prepaid HMO plans, the dental insurance plan, and the life and disability insurance premiums. The proposed budget includes a 12 percent increase for the medical plans. Operating Materials & Supplies – $23.0M Disinfection Chemicals – The largest cost related to disinfection is for chemicals, specifically bleach. Sodium Hypochlorite (Bleach) – Approximately 92 percent of the bleach is used for effluent disinfection. The remaining bleach usage is for odor control, disinfection of plant water, and the control of filamentous organisms in activated sludge in the secondary treatment process. Bleach use is projected to decrease as new secondary facilities become operational. The decrease will occur because there will no longer be primary bleach dosing at Plant 2 when the new trickling filters are in operation. It is anticipated that the District will use 4.5 million gallons of process bleach in FY 2011-12 with an associated budget of $3.2 million. Summary of Operating & Maintenance Expenses Category 2010-11 Approved 2011-12 Approved 2011-12 Updated Proposed Salaries and Benefits $94.9 $96.3 $97.6 Operating Materials & Supplies 24.6 25.3 23.0 Contractual Expenses 23.6 26.1 25.1 Repairs and Maintenance 11.1 11.1 12.0 Utilities 9.2 11.3 9.6 Professional Services 3.2 2.7 2.9 Other Materials, Supplies, Services 2.8 3.0 3.1 Self-Insurance Requirements 2.5 2.2 2.2 Training and Meetings 1.2 1.2 0.9 Research and Monitoring 1.1 1.0 1.1 Administrative Expenses 1.1 1.1 1.2 Printing and Publications 0.5 0.5 0.5 Capital Grants to Member Agencies 0.0 0.0 0.0 Cost Allocation (23.2) (23.6) (24.5) Total Operating Expenses $152.6 $158.2 $154.7 2011–12 Budget Update 21 Chemical Coagulants – Anionic polymer is added to the influent wastewater along with ferric chloride via the physical/chemical treatment systems at both plants to improve solids removal efficiencies in the primary clarifier basins. Cationic polymer is added to digested sludge prior to dewatering to cause the sludge to coagulate to improve the sludge and water separation process. Cationic polymer is also added to the waste activated sludge dissolved air flotation thickeners (DAFTs) to improve solids coagulation. The usage costs for this group of chemicals is not expected to increase as much as previously estimated as overall chemical coagulants are being proposed at $1.2 million less than previously approved for 2011-12. Odor Control Chemicals – The District uses hydrogen peroxide and sodium hydroxide (caustic soda) as the primary odor control chemicals within the treatment plants; ferrous chloride, magnesium hydroxide, calcium nitrate and caustic soda are the primary odor and corrosion control chemicals used within the collection system. An increase of $200,000 is being proposed from the previously approved $8.9 million 2011-12 budget for odor control chemicals due to recent increases in unit costs. Contractual Services – $25.1M The major component of this category is biosolids removal and transport costs. Contracts have been executed with firms for agricultural reuse of residual solids. Since the closure of the Coyote Canyon Landfill in 1990, no replacement site for sludge disposal has yet been approved within Orange County. Total estimated biosolids production for Fiscal Year 2011-12 is 287,000 wet tons. The 2011-12 proposed budget reflects a decrease of $1.6 million, based on updated trend analysis of costs. This category also includes appropriations for grounds keeping services, janitorial services, security services, toxic removal services, outside laboratory services, trash pickup, plant site sweeping, temporary help to level out periodic increases in staff workload, a maintenance contract for the Plant 2 oxygen generation plant, digester cleaning and disposal services, line cleaning and closed-circuit television (CCTV) services. Repairs and Maintenance – $12.0M This item, which is for parts and services for repair of plant and collection facilities and annual service contracts, reflects an authorization to allow for routine equipment maintenance and is expected to increase by $900,000. Two large repairs include: Plant 2 aeration deck crack repair budgeted at $504,000 and replacement of flexible disks in the Plant 1 aeration basin budgeted at $363,000. Utilities – $9.6M The overall cost for utilities is a significant component of the operating budget. The overall cost for utilities is anticipated to decrease by $1.7 million compared with the previously approved 2011-12 budget.  Natural Gas – Natural gas is purchased to supplement the digester gas that is used to run the central generation facilities. The 2011-12 budget shows a decrease of $700,000 reflecting lower levels of natural gas needed because central generation engine automation controls at Plant 2 allow the engines to respond to lower digester gas production without having to shut down an engine. Thus the Plant 2 boilers can run on digester gas all the time, reducing natural gas usage. Moreover, given current market conditions projected natural gas prices have been reduced significantly.  Electricity – Electricity is the largest utility cost incurred by the District and is used to run the plant processes. The 2011-12 budget reflects a decrease of $1.0 million due to a lower projected increase in Edison energy rates. Nearly all the power required to operate Plant No. 2 is generated by the District’s Central Power Generation Facilities. Operating Expenses 22 Professional Services – $2.9M Professional Services includes General Counsel, special labor counsel, legislative advocacy, audit and miscellaneous accounting services, engineering, and other technical consulting services. Other Material, Supplies, Services – $3.1M This category of costs includes the in-lieu insurance premium used to maintain the level of accumulated reserves for the property and general liability self- insurance programs. This in-lieu cost for 2011-12 is proposed at $1.1 million. Expenses not chargeable to other categories, such as freight and miscellaneous items, and annual regulatory fees assessed by the SCAQMD, are recorded with this category. Insurance – $2.2M The District’s outside excess general liability insurance coverage is $30 million per occurrence with a self-insurance retention of $250,000 and $500,000 for EPLI. The District’s property insurance coverage of $1 billion for perils of fire and $300 million for perils of flood is subject to a self-insurance retention of 5 percent per unit of insurance up to $250,000 for fire and $100,000 for flood. The District is totally self-insured for earthquake. An appropriation of $1.1 million for in-lieu premium contribution charged to operations is recommended for the Property and General Liability Program. This will serve to maintain the reserves balance. Training and Meetings – $0.9M Given current economic constraints, employee travel is now subject to increased scrutiny. All meeting request budgets have been reviewed for necessity, duplication, and redundancy and have been limited to a responsible level. The 2011-12 proposed budget for training has been decreased in line with recent trends as opposed to the previous allocation based on a percentage of the Regular Salaries budget. Training activities are coordinated though the Human Resources Department and the Risk Management Division. This category includes ongoing technical and safety training and materials for staff, required training for computerized plant monitoring and control systems and training to allow for a more adaptive and flexible work force. Cost savings have been achieved in part through increased use of on-line training. Research and Monitoring – $1.1M Overall, this category of costs is expected to increase slightly over the next fiscal year. Research and monitoring expenditures consist of contract services to carry out the extensive ocean monitoring program required by the EPA under provisions of the District’s ocean discharge permit (NPDES) permit; air quality monitoring costs; the District’s contribution to the Southern California Coastal Water Research Project (SCCWRP) being conducted under a joint power agreement with other Southern California municipal dischargers; and also provide for increased operational and ocean research and evaluation to develop optimum operating parameters in treatment plants. Administrative Expenses – $1.2M These accounts include supplies, postage, technical journals and publications, forms, small office equipment, and small computer items that cost less than $5,000 per item and exclude items that are capitalized. 2011–12 Budget Update 23 Printing and Publication – $0.5M The budget provides for in-house and outside reproduction costs and reflects an expanded management information system and administrative requirements as well as a continuing demand by the public and regulatory agencies for information. The continuing effort of the Public Affairs Office to improve public education programs about the District’s activities is also reflected in the budget for this line item. This group of accounts also includes costs for photo processing, advertisements, and notices. To reduce inflow and infiltration to OCSD’s sewage system, local sewers which are not owned or maintained by OCSD must be repaired. The Cooperative Projects Grant Program has funded projects that are led by local agencies to reduce the inflow and infiltration entering OCSD’s sewerage system. Funds have been provided for an approved project on a reimbursement basis after the project has been completed. There is no longer a budget for Cooperative Grants, however, if a member city or agency presents a possible cost-savings project, OCSD will evaluate the project as a budget cost- savings measure and may participate accordingly. Cost Allocation – ($24.5M) This represents direct labor and benefit charge outs and materials, supplies and services cost allocation to the capital project where the related work was performed. The Nerissa is OCSD’s custom designed and built ocean monitoring and research vessel. It holds and operates specialized ocean sampling equipment that enables OCSD to conduct core and regional monitoring and special studies along the coastline. Departments Summary 24 Expenses by Department (in millions) Staffing by Department (FTEs) Department 2010-11 Budget 2011-12 Originally Proposed Percent Change 2011-12 Updated Proposed Percent Change Administration Units: Office of the General Manager $3.9 $3.9 0.0% $3.9 0.0% * Human Resources 0.0 0.0 N/A 4.0 N/A Administrative Services 21.8 22.2 1.8% 21.2 (4.5%) Sub-Total $25.7 $26.1 1.6% $29.1 11.5% Operating Units: * Facilities Support Services 0.0 0.0 N/A 25.2 N/A Technical Services 19.3 19.3 0.0% 0.0 (100.0%) Engineering 4.9 4.8 (2.0%) 8.0 66.7% Operations & Maintenance 100.1 105.9 5.8% 90.2 (14.8%) Sub-Total $124.3 $130.0 4.6% $123.4 (5.1%) Total $150.0 $156.1 4.1% $152.5 (2.3%) Less: Operating Revenue (16.5) (15.0) (9.1%) (15.0) 0.0% Grand Total $133.5 $141.1 5.7% $137.5 (2.6%) Department 2010-11 Budget 2011-12 Originally Proposed Percent Change 2011-12 Updated Proposed Percent Change Administration Units: Office of the General Manager 15.00 15.00 0.0% 13.00 (13.3%) * Human Resources 0.00 0.00 N/A 20.00 N/A Administrative Services 111.75 111.75 0.0% 110.75 (0.9%) Sub-Total 126.75 126.75 0.0% 143.75 13.4% Operating Units: * Facilities Support Services 0.00 0.00 N/A 83.75 N/A Technical Services 102.50 102.50 0.0% 0.00 (100.0%) Engineering 120.50 120.50 0.0% 128.50 6.6% Operations & Maintenance 291.25 291.25 0.0% 281.00 (3.5%) Sub-Total 514.25 514.25 0.0% 493.25 -4.1% Total FTEs 641.00 641.00 0.0% 637.00 (0.6%) * New departments created as part of the Beyond 2012 staffing reorganization. 2011–12 Budget Update 25 Administration Units Office of the General Manager Budget $3.9M – Staffing 13 FTEs The Office of the General Manager provides general oversight of all Sanitation District operations and incorporates functions in the areas of Public Affairs and Board Services. This office reports directly to the Board of Directors. The budget reflects the transfer of 2.0 unfunded FTE Management Discretion positions to Human Resources. Human Resources Budget $4.0M – Staffing 20.0 FTEs The Human Resources Department works with management and employees to ensure an effective and productive employment relationship. This newly created department reports directly to the Assistant General Manager. The budget includes 2 District- wide pooled vacant positions as well as 3 unfunded Management Discretion positions. Administrative Services Budget $21.2M – Staffing 110.75 FTEs The Administrative Services Department maintains financial oversight and administration of all District funds and accounts and is responsible for contract administration and procurement, oversees all District computer, networking and customer support issues, and identifies and manages potential risk to the organization to create a safe, healthy and secure environment for staff, contractors, and visitors. The budget reflects a reduction of 1 FTE due to the net impact of a transfer of 17 FTEs to the new Human Resources Department along with the transfer of 16 FTEs from other departments. * FTE = Full-Time Equivalent Position Operating Units Facilities Support Services Budget $25.2M – Staffing 83.75 FTEs The new Facilities Support Services Department provides fleet and heavy equipment services for the District, handles non-public works construction support and projects, and operates and maintains the regional collection system facilities providing reliable collection and transportation of wastewater, and efficient, safe operation and maintenance of the system in the 463 square mile area. The budget includes 83.75 FTEs transferred from various other departments, primarily from Operations and Maintenance. Engineering Budget $8.0M – Staffing 128.5 FTEs The Engineering Department is responsible for the planning, design and construction of the District’s capital improvement program as well as environmental compliance and asset management. The budget reflects reduced use of Integrated Program Management Consultants (IPMC) to supplement District resources in managing the CIP and a net increase of 8 FTEs due the transfer of the Environmental Compliance Division from the Technical Services Department along with the transfer of a large portion of the Asset Management staff to the Operations and Maintenance Department and the transfer of the Facilities Engineering Division to Facilities Support Services. Operations and Maintenance Budget $90.2M – Staffing 281.0 FTEs The Operations and Maintenance Department is responsible for operation of the District’s two wastewater treatment plants as well as the environmental laboratory and ocean monitoring. The budget reflects a reduction of 10.25 FTEs due to the net impact of a District-wide reorganization that included the reduction of three divisions in this department with much of their staff transferred to the Facilities Support Services Department and the transfer of the Environmental Laboratory and Ocean Monitoring Division from the Technical Services Department. 26 Service Description The mission of the Office of the General Manager is to work with the Board to establish standards, policies and procedures, and the overall goals and Strategic Plan of the Sanitation District. The Office of the General Manager reports the progress in meeting the established goals to support OCSD’s mission, and provides general oversight of operations. The office reports directly to the Board of Directors. In addition to the line departments, this department oversees District-wide functions in the areas of Public Affairs and Board Services. Public Affairs provides services and implements programs to meet the communications needs of OCSD’s internal and external audiences. The division plans and implements media relations, website content, community relations, community education and outreach, employee newsletter, intranet development, corporate identity program, collateral material and graphics development, presentation development, and crisis communications. The Public Affairs Division also handles state and federal legislative advocacy, grants and appropriations, and intergovernmental relations. The state and federal legislative advocates are managed by this division. Board Services includes the Clerk of the Board office. Services include supporting the Board of Directors, acting as filing officer for Statement of Economic Interests, receiving and processing summons and complaints filed against OCSD. Office of the General Manager Operating Expense General Counsel Office Board of Directors General Manager –General Management Administration –Board Services –Public Affairs Human Resources Administrative Services Facilities Support Services Engineering Operations & Maintenance General Management Administration 2011-12 2011-12 2010-11 Originally Updated Category Budget Proposed Proposed Personnel 2,317,600$ 2,345,900$ 2,347,800$ Chemicals & Other Supplies 305,330 284,380 275,380 Professional / Contractual Services 405,000 331,000 355,000 Research & Monitoring 0 0 0 Repairs & Maintenance 1,500 1,500 1,500 Utilities 117,000 122,000 122,000 Other 833,520 903,520 902,020 Cost Allocation (81,170) (81,170) (70,850) Total 3,898,780$ 3,907,130$ 3,932,850$ Office of the General Manager 2011–12 Budget Update 27 Budget Overview In July 2009, the General Manager combined the Public Information Office with Legislative Affairs to form the Public Affairs Division. This year, the Human Resources Division became a department reporting directly to the Assistant General Manager. The budget for the General Manager’s Office for Fiscal Year 2011-12 will remain essentially flat. The General Manager’s Office overall staffing has been decreased by 2 full-time equivalent unfunded Management Discretion positions which have been moved to Human Resources. Performance Objectives / Measures  Maintain OCSD staffing at or below 637.0 FTEs.  Maintain 100 percent compliance with terms and conditions of our permits and local, state and federal regulations.  Deliver 80+ percent of each fiscal year’s CIP budget principles.  Update key messages and collateral materials used to educate the public about how OCSD protects public health and the environment.  Establish key legislative priorities and keep the Board and senior management apprised of matters in Sacramento and Washington, D.C.  Provide accurate and timely board/committee agenda packages to the Board of Directors.  Update performance dashboard quarterly.  Continue the “Leading OCSD” Program to foster leadership and change at all levels. Staffing Trends 3 3 2222 2003 2004 2005 2006 2007 2008 Authorized FTE Positions Managers 3.00 Supervisors / Professionals 7.00 Administrative / Clerical 3.00 Other 0.00 Total 13.00 Through the Board’s leadership, OCSD updated its Five-Year Strategic Plan in November 2010. 21.75 21.75 15.00 15.00 13.00 07-08 08-09 09-10 10-11 11-12 Staffing Trends 28 Service Description The Human Resources Department’s (HRD) mission is to work with management and employees to ensure an effective and productive employment relationship. A major goal of the HRD operation is to support a workplace environment grounded in fair and equitable employment decisions and practices. HRD is responsible for all aspects of human resources management and labor/employee relations. HRD serves as the in-house advisor to the General Manager, executive staff, District departments, and line staff. Delivering services with a high-level of customer satisfaction is a key objective. HRD reports directly to the Assistant General Manager in charge of administrative operations. HRD administration oversees the following operating sections to support the major goal of equal employment opportunity for all persons on the basis of job-related merit: Human Resources; Labor & Employee Relations; and, Employee Development & Training. Human Resources (HR) activities support classification and compensation; employee benefits and wellness programs; staffing (recruitment, selection, and employment); and, employee recognition and rewards. Labor & Employee Relations (LER) activities support the employment relationship for management and employees. Employee Development & Training (EDT) activities support a higher performing organization while helping each operating unit and the employees doing the work within them to reach their full potential. Operating Expense Human Resources Department 2011-12 2011-12 2010-11 Originally Updated Category Budget Proposed Proposed Personnel $0 $0 3,633,270$ Chemicals & Other Supplies 0 0 588,050 Professional / Contractual Services 0 0 537,700 Research & Monitoring 0 0 0 Repairs & Maintenance 0 0 0 Utilities 0 0 0 Other 0 0 82,890 Cost Allocation 0 0 (850,800) Total $0 $0 3,991,110$ Human Resources Administrative Services Facilities Support Services Engineering Operations & Maintenance General Counsel Office Board of Directors General Manager General Management Administration –Human Resources Administration –Labor & Employee Relations –Employee Development & Training Human Resources Department 2011-12 Budget Update 29 Budget Overview Human Resources became a separate department during Fiscal Year 2010-11 so there is no budget history available for comparison at this time. The 20 full-time equivalent positions authorized in this department include 15 Human Resources staff positions, 2 District-wide pooled vacant positions, and 3 unfunded Management Discretion positions. The department budget for Fiscal Year 2011-12 is approximately $4.0 million. Performance Objectives / Measures  Ensure the Department’s planned budget is managed to within 90 to 100% of the approved amount.  Enhance HR Technologies by June 2012.  Continuous development of leadership and succession management.  Continuous development of the Performance Management program.  Support the training level of service of 45 hours per employee.  Implement staffing procedures through June 2012.  Ensure the department’s strategic plan deliverables are completed by June 2012. Authorized FTE Positions Managers 1.00 Supervisors / Professionals 12.00 Administrative / Clerical 3.00 Operations & Maintenance 1.00 Other 3.00 Total 20.00 20.00 07-08 08-09 09-10 10-11 11-12 Staffing Trends 40 150 200 0 2,000 4,000 6,000 8,000 10,000 Regulatory Webinar CIP Conference Legal Technology Administrative Technical Safety Hours of Training The Human Resources Department provides nearly 25,000 hours of employee training annually. 30 Service Description The Administrative Services Department oversees all of OCSD’s finance, contracts/ purchasing, risk management, and information technology activities, including both day-to-day operations and strategic planning. The department serves as a liaison to Executive Management, the Board of Directors, and other departments of OCSD. The department includes four divisions: Financial Management; Contracts, Purchasing, and Materials Management; Information Technology; and Risk Management. Administrative Services Management provides leadership and oversight to all Administrative Services divisions. Financial Management oversees and administers all OCSD’s funds and accounts. Programs include treasury management and debt financing, accounts receivable and payable, user fees, payroll, accounting for fixed assets, coordinating the capital and operating budget process, and risk management. Contracts, Purchasing, & Materials Management is responsible for contract administration and procurement for all departments. Additionally, this division manages the OCSD’s warehouses, receiving and maintaining inventory, and distributing supplies, materials, and equipment. Information Technology is responsible for customer support related information technology assets and services, networking and infrastructure, telecommunications service operation and maintenance, network and programming, solutions and application support. Operating Expense Administrative Services Department –Administrative Services –Financial Management –Contracts, Purchasing & Materials Management –Information Technology –Risk Management General Counsel Office Board of Directors General Manager Human Resources Administrative Services Facilities Support Services Engineering Operations & Maintenance General Management Administration 2011-12 2011-12 2010-11 Originally Updated Category Budget Proposed Proposed Personnel 17,205,870$ 17,444,370$ 16,459,000$ Chemicals & Other Supplies 2,189,730 2,202,320 1,257,430 Professional / Contractual Services 2,117,040 2,084,870 2,002,890 Research & Monitoring 0 0 0 Repairs & Maintenance 1,285,270 1,295,310 1,281,270 Utilities 300,000 300,000 300,000 Other 1,109,310 1,253,780 1,171,060 Cost Allocation (2,357,940) (2,357,940) (1,248,940) Total 21,849,280$ 22,222,710$ 21,222,710$ Administrative Services Department 2011-12 Budget Update 31 Risk Management identifies and manages potential risk to the organization and provides solutions for mitigation or reducing the risk to acceptable levels. The Risk Management Division works to create a safe, healthy, and secure environment for District staff, contractors, and visitors. Additionally, it provides the support for management and employees to take ownership of identifying and controlling risk and cost-effectively addressing safety, health and security issues. Additionally, in support of District-wide financial and operational activities, a small Management Services Team has been created within the Administrative Services Department. This team provides District-wide support in the areas of business efficiency, budgeting, departmental support, strategic planning, auditing and special projects. Budget Overview The Fiscal Year 2011-12 proposed Administrative Service Department budget reflects a 4.5 percent decrease compared with the originally proposed budget for the year. The decrease is largely the result of the Beyond 2012 reorganization where Human Resources was moved out of Administrative Services and made into a separate department. This reduction was partially offset by the creation of the Risk Management Division and by transfers of staff to the Information Technology Division. Although there was only a net reduction of 1.0 FTE, there was a significant decrease in personnel costs as District-wide ARBA, net pension, and net other postemployment benefits are all budgeted in Human Resources. Performance Objectives / Measures  Submit the annual sewer service fee property parcel database to the County in time for placement on annual secured property tax bills.  Process all approved sewer service fee refund requests within 45 days, 90 percent of the time.  All debt service payments will be paid electronically, on the actual due dates, and error free 100 percent of the time.  Continue the cycle count program and maintain a 97 percent accuracy rate or better.  Successfully implement a Professional Design Service Agreement (PDSA) Contracts Program by end of Fiscal Year 2010-11.  Successfully revise Delegation of Authority and have approved by all Committees and Board.  Successfully complete a Chemical Sustainability Study.  100 percent completion of all compliance testing.  Continue completion of the Information Technology Strategic Plan (ITSP) Planned Annual Objectives.  Ascertain the measurement of ITSP target achievement based on the importance and completion of goals supporting the Levels of Service (LOS) in the OCSD Strategic Plan.  Maintain an average uptime of 90 percent for critical applications.  Obtain the Voluntary Protection Program (VPP) designation. Staffing Trends 515150 45 4039 2003 2004 2005 2006 2007 2008 Authorized FTE Positions Managers 8.00 Supervisors / Professionals 62.75 Administrative / Clerical 32.00 Technical 2.00 Operations & Maintenance 6.00 Total 110.75 106.00 104.50 108.75 111.75 110.75 07-08 08-09 09-10 10-11 11-12 Staffing Trends OCSD was awarded the 2010 AEP – Achievement of Excellence in Procurement Award by the California Association of Public Procurement Officials (CAPPO). This award demonstrates our commitment to procurement innovation, customer service, and best use of available technology. 32 Service Description The Facilities Support Services Department consists of four divisions: Facilities Support Services Administration provides leadership, support, and management oversight for the Department in order to accomplish OCSD’s Strategic Plan and our annual goals. Equipment / Rebuild provides fleet and heavy equipment services and management, equipment rebuild and fabrication, and machining/fabrication/welding services to all OCSD staff. Facilities Engineering provides engineering, technical support, and contracted services support in order to deliver timely, non-public works construction support and projects for the agency. Collection Facilities operates and maintains the regional facilities which include gravity sewers and pumping facilities; provides services to minimize odor and corrosion impacts within the facilities; and works with industrial and commercial dischargers to inspect, monitor and sample within the collection system to assure regulatory compliance. Facilities Support Services Department Operating Expense –Facilities Support Services Administration –Equipment / Rebuild –Facilities Engineering –Collection Facilities General Counsel Office Board of Directors General Manager Human Resources Administrative Services Facilities Support Services Engineering Operations & Maintenance General Management Administration 2011-12 2011-12 2010-11 Originally Updated Category Budget Proposed Proposed Personnel $0 $0 11,820,800$ Chemicals & Other Supplies 0 0 7,713,940 Professional / Contractual Services 0 0 4,261,660 Research & Monitoring 0 0 0 Repairs & Maintenance 0 0 3,558,650 Utilities 0 0 593,300 Other 0 0 67,930 Cost Allocation 0 0 (2,801,780) Total $0 $0 25,214,500$ Facilities Support Services Department 2011-12 Budget Update 33 Budget Overview In August of Fiscal Year 2010-11, the Facilities Support Services Department was formed as part of the Beyond 2012 reorganizational changes. Additional changes were made in April 2011 to further align roles and responsibilities with the Beyond 2012 Plan’s recommendations. The Facilities Support Services Department is comprised of staff from Operations and Maintenance, Engineering, and Technical Services. We form a diverse, but unified team of specialists to adapt and serve the District’s changing needs. Performance Objectives / Measures  Maintain 100% compliance with all regulatory permits related to our business.  Manage Divisional expenditures within 96% - 100% of approved budget and related risk levels.  Maintain 100% compliance with Board agreed Levels of Service supported by the FSS Department.  Complete more than 95% of all mandatory safety training for the Fiscal Year.  Meet the Beyond 2012 Plan’s implementation milestones.  Maintain a safe workplace and complete quarterly inspections. Authorized FTE Positions Managers 4.00 Supervisors / Professionals 23.00 Administrative / Clerical 6.50 Operations & Maintenance 36.00 Technical 13.00 Interns 1.25 Total 83.75 83.75 07-08 08-09 09-10 10-11 11-12 Staffing Trends OCSD routinely inspects the facilities of industrial wastewater dischargers. 34 Service Description The Engineering Department is responsible for the OCSD Capital Improvement Program, Environmental Compliance, and Asset Management. The Engineering Department is comprised of six divisions: Engineering Administration provides management to all Engineering Divisions. Planning is responsible for master planning the OCSD Capital Improvement Program, and California Environmental Quality Act review. In addition, this division is responsible for the OCSD Corrosion Management Program, the Research Program, annexations, connection permitting, and inter-agency agreements. Project Management Office is responsible for the delivery of capital projects from the preliminary design stage through the closeout of construction. Engineering and Construction provides design and construction engineering, quality control inspection, and other technical support for design and construction projects. Asset Management is responsible for assessment of all of OCSD’s assets and systems and for planning the rehabilitation and replacement of facilities to ensure their ability to deliver the required level of service with an acceptable level of risk at the optimal lifecycle cost. Operating Expense Engineering Department –Engineering Administration –Planning –Project Management Office –Engineering & Construction –Asset Management –Environmental Compliance General Counsel Office Board of Directors General Manager Human Resources Administrative Services Facilities Support Services Engineering Operations & Maintenance General Management Administration 2011-12 2011-12 2010-11 Originally Updated Category Budget Proposed Proposed Personnel 19,437,400$ 19,709,900$ 21,710,500$ Chemicals & Other Supplies 293,730 282,890 460,390 Professional / Contractual Services 220,000 205,000 327,000 Research & Monitoring 0 0 145,000 Repairs & Maintenance 175,050 175,050 3,550 Utilities 0 0 0 Other 20,320 20,320 618,310 Cost Allocation (15,242,750) (15,586,850) (15,236,050) Total 4,903,750$ 4,806,310$ 8,028,700$ Engineering Department 2011–12 Budget Update 35 Environmental Compliance is responsible for securing and maintaining permits from regulatory agencies for activities that may impact air, land, wastewater, and endangered and threatened species; implementing the pretreatment program; supporting biosolids and wastewater reuse; evaluating plant processes and compliance activities; evaluating and proactively developing new regulations; and building positive relationships with the regulatory community, agency associations and the public. Budget Overview During Fiscal Year 2010-11 (as part of the District-wide reorganization), the Engineering Department acquired the Environmental Compliance Division from the Technical Services Department. In addition, the majority of the Asset Management Division was moved to the O&M Department and the Facilities Engineering Division was moved to the new Facilities Support Services Department. In the proposed Fiscal Year 2011-12 budget, 33 Environmental Compliance staff have been reassigned to Engineering, the Asset Management Division was reduced to six staff and the Planning Division acquired three new staff to work on corrosion and research issues. Performance Objectives / Measures  Expend minimum 90 percent of project annual Capital Improvement Program cash flows for Fiscal Year 2011-12.  Ensure that reporting division’s expenditures are managed to less than 100 percent of proposed budgets.  Ensure that reporting divisions achieve 90 percent of individual performance objectives. Staffing Trends 989899 95 8079 2003 2004 2005 2006 2007 2008 Authorized FTE Positions Managers 6.00 Supervisors / Professionals 87.00 Administrative / Clerical 34.00 Interns 1.50 Operations & Maintenance 0.00 Total 128.50 104.50 108.50 105.50 120.50 128.50 07-08 08-09 09-10 10-11 11-12 Staffing Trends CIP Expenditures Replacement/ Rehabilitation $89M 68% Support $10M 8% Additional Capacity $10M 8% Improved Treatment $20M 16% In 2011-12, the Engineering Department will be responsible for $129 million in capital expenditures. 36 Service Description The Operations and Maintenance Department is responsible for treating wastewater, reusing or disposing of the treated wastewater and all residuals, and providing care to all facilities. The O&M Department consists of six divisions: Operations and Maintenance Administration provides leadership and oversight to all Operations and Maintenance divisions. Plant No. 1 and Plant No. 2 Operations are responsible for the daily management of the wastewater treatment processes, sludge and biosolids treatment and loading processes, and odor and air quality control processes. Activities also include ensuring compliance with all regulatory permits, support of the Capital Improvement Program, and coordination of construction and maintenance work. Plant 1 Operations also ensures the delivery of specification water to the Ground Water Replenishment System. Mechanical and Reliability Maintenance is responsible for maintaining and repairing all mechanical equipment in the treatment plants; facilities maintenance, and for all OCSD maintenance planning and equipment reliability maintenance programs. The division provides appropriate maintenance support for wastewater treatment processes in a safe, efficient, and effective manner so that OCSD can meet all discharge requirements. Operations and Maintenance Department Operating Expense –Operations & Maintenance Administration –Plant No. 1 Operations –Plant No. 2 Operations –Mechanical & Reliability Maintenance –Instrumentation & Electrical Maintenance –Environmental Laboratory & Ocean Monitoring General Counsel Office Board of Directors General Manager Human Resources Administrative Services Facilities Support Services Engineering Operations & Maintenance General Management Administration 2011-12 2011-12 2010-11 Originally Updated Category Budget Proposed Proposed Personnel 40,751,300$ 41,354,700$ 41,643,200$ Chemicals & Other Supplies 23,714,740 24,474,220 15,338,300 Professional / Contractual Services 23,258,710 25,575,310 20,477,900 Research & Monitoring 0 0 910,100 Repairs & Maintenance 9,311,900 9,343,810 7,166,250 Utilities 8,459,720 10,531,860 8,631,000 Other 96,690 99,890 292,100 Cost Allocation (5,486,120) (5,486,120) (4,303,180) Total 100,106,940$ 105,893,670$ 90,155,670$ Operations & Maintenance Department 2011–12 Budget Update 37 Service Description (continued) Instrumentation and Electrical Maintenance is responsible for maintaining all instrumentation, electrical, HVAC equipment and systems in the treatment plants, pump stations, support and office buildings; providing reliable power by operating the two generating facilities and back-up generator power sources, repairing all systems, and supporting the CIP. Environmental Laboratory and Ocean Monitoring performs analytical procedures, monitoring method development, data analysis and reporting for a broad range of programs and sample types, including wastewater treatment streams, industrial inputs, offshore and nearshore receiving waters, final effluent and air in order to demonstrate the effectiveness of wastewater treatment processes, the industrial source control program, compliance with water and air regulations and protection of the receiving water environment. Budget Overview The Fiscal Year 2011-12 budget for the Department reflects a $15.7 million decrease from the originally proposed budget for this year. This decrease is primarily related to responsibilities transferred to the new Facilities Support Services Department. Despite the transfer of the Environmental Laboratory and Ocean Monitoring Division from the Technical Services Department, there was a net reduction of 10.25 FTEs in Operations and Maintenance due to the reorganization. Other significant factors include:  Fiscal Year 2011-12 budgets are linked to meeting all regulatory, Consent Decree, and Level of Service needs for the facilities and systems managed by the O&M staff. They include: providing treated water to OCWD for GWR System needs; ramping-up to full secondary treatment by December 31, 2012; and minimizing offsite odor impacts from Plants No. 1 and 2 in conformance with new Dilution to Threshold (D/T) criteria.  The commissioning of two secondary treatment processes and a new headworks will drive the largest changes in this year’s budget including the following:  Significant reductions in bleach usage with the discontinuation of disinfecting primary influent at Plant No. 2.  Increases in polymer usage as a result of additional secondary solids being generated and bleach being removed from primary influent stream  Significant increases in electricity usage resulting from addition of energy intensive equipment  Increase in biosolids offsite management costs because of the additional secondary solids that will be generated Authorized FTE Positions Manager 5.00 Supervisors / Professionals 89.00 Administrative / Clerical 6.75 Technical 2.00 Interns 1.25 Operations & Maintenance 177.00 Total 281.00 Disinfection chemical tanks at Plant No. 2. 292.75 299.25 306.25 291.25 281.00 07-08 08-09 09-10 10-11 11-12 Staffing Trends 38  Maintenance repair costs will increase this budget, and likely in future budgets as a result of improved asset planning that has identified several areas of the treatment plants that require maintenance investment in order to avoid significant repair or replacement costs, and increased maintenance needs in our older facilities where systems are at or beyond their life cycle. Performance Objectives / Measures  Achieve 100 percent compliance with water, solids, air, and energy permits.  Achieve a compliance level of 80 percent to 100 percent of the Levels of Service (LOS) targets consistent with resource availability.  Manage O&M expenditures to within 96 to 100 percent of approved budget. Operations and Maintenance Department (continued) A - 1 Appendix Cash Flow Projection A – 2 Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary Preliminary Preliminary Ref Description 11-12 12-13 13-14 14-15 15-16 16-17 Revenues: 1 General User Fees 248,519,000 276,909,000 299,500,000 321,029,000 344,157,000 362,217,000 2 Permitted User Fees 11,396,000 12,548,000 13,426,000 14,366,000 15,372,000 16,141,000 3 IRWD Assessments 13,973,440 14,625,070 15,584,880 15,444,790 16,232,000 11,493,130 4 SAWPA Assessments 4,402,600 4,514,340 4,628,230 4,745,280 4,865,490 4,988,870 5 Property Taxes (Flat in short term) 63,371,000 63,371,000 66,540,000 69,867,000 73,360,000 77,028,000 6 New COP Issues - 120,000,000 - - - 45,000,000 7 Interest Revenues 11,687,000 12,048,000 15,168,000 17,104,000 16,065,000 15,694,000 8 Capital Facilities Capacity Charges 6,805,000 7,289,000 7,969,000 8,701,000 9,488,000 10,164,000 9 Other Revenues 11,949,950 3,794,200 27,216,200 3,876,200 3,919,200 18,343,200 10 Revenues 372,103,990 515,098,610 450,032,310 455,133,270 483,458,690 561,069,200 Requirements: 11 Oper & Mtce Exp (7.0% yr) 152,545,540 169,516,000 179,046,250 189,397,000 202,039,000 221,987,000 12 Capital Improvement Program 129,169,900 169,002,000 212,313,000 173,426,000 214,284,000 130,646,000 13 Repl, Rehab & Refurb - 1,000,000 1,000,000 2,500,000 21,932,000 67,385,000 14 COP Service (5.0%, 30 yrs) 92,162,910 96,149,260 113,782,980 100,571,240 100,471,650 106,541,240 15 Other Requirements 31,846,200 9,406,200 2,156,200 2,156,200 2,156,200 2,156,200 16 Requirements 405,724,550 445,073,460 508,298,430 468,050,440 540,882,850 528,715,440 17 Revenues-Requirements (33,620,560) 70,025,150 (58,266,120) (12,917,170) (57,424,160) 32,353,760 Accumulated Funds: 18 Beginning of Year 607,016,640 573,396,080 643,421,230 585,155,110 572,237,940 514,813,780 19 End of Year 573,396,080 643,421,230 585,155,110 572,237,940 514,813,780 547,167,540 20 Consolidated Reserve Policy 485,509,910 510,199,260 527,772,980 518,239,240 517,988,650 533,907,240 21 Over (Under) Reserve Policy 87,886,170 133,221,970 57,382,130 53,998,700 (3,174,870) 13,260,300 Sewer Service User Fees: 22 Avg SFR Annual User Fee $267.00 $294.00 $314.58 $336.60 $360.16 $378.17 23 Percentage Change 9.43% 10.11%7.00%7.00%7.00%5.00% 24 Equivalent Dwelling Units 926,990 929,401 931,910 934,519 937,229 939,994 25 SFR Connection Fee $3,424 $3,595 $3,775 $3,964 $4,162 $4,370 26 Outstanding COPs $1,378,157,000 $1,467,848,000 $1,420,435,000 $1,384,924,000 $1,348,023,000 $1,350,021,000 Reserve Policy 27 50% Next Year Operating 76,273,000 84,758,000 89,523,000 94,699,000 101,020,000 110,994,000 28 10% Next Year Operating 15,255,000 16,952,000 17,905,000 18,940,000 20,204,000 22,199,000 29 100% Next Year AUG COP Svc. 92,162,910 96,149,260 113,782,980 100,571,240 100,471,650 106,541,240 30 50% average CIP bal to 2020 88,421,000 88,801,000 86,569,000 86,369,000 81,080,000 77,492,000 31 Short term CIP, GWRS - - - - - - 32 DSR @ 10% Outstanding COPs 137,816,000 146,785,000 142,044,000 138,492,000 134,802,000 135,002,000 33 SFI @ $57mm INPUT 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000 57,000,000 34 Repl & Refurb @ 2%/yr 58,582,000 59,754,000 60,949,000 62,168,000 63,411,000 64,679,000 35 Total 525,509,910 550,199,260 567,772,980 558,239,240 557,988,650 573,907,240 COP Ratios 36 Sr Lien Coverge, Min 1.25 2.31 2.27 2.31 2.56 2.71 2.66 2011-12 Budget Update A - 3 Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary 10-Year Description 17-18 18-19 19-20 20-21 Total Revenues: General User Fees 377,680,000 393,807,000 410,626,000 428,024,000 3,462,468,000 Permitted User Fees 16,787,000 17,528,000 18,302,000 19,110,000 154,976,000 IRWD Assessments 7,131,850 7,043,300 7,830,140 9,062,110 118,420,710 SAWPA Assessments 5,115,420 5,245,160 5,378,090 5,514,210 49,397,690 Property Taxes (Flat in short term) 80,879,000 84,923,000 89,169,000 93,627,000 762,135,000 New COP Issues - - - - 165,000,000 Interest Revenues 15,994,000 18,575,000 22,022,000 21,919,000 166,276,000 Capital Facilities Capacity Charges 10,885,000 10,874,000 11,452,000 12,060,000 95,687,000 Other Revenues 4,007,200 4,052,200 12,479,200 4,147,200 93,784,750 Revenues 518,479,470 542,047,660 577,258,430 593,463,520 5,068,145,150 Requirements: Oper & Mtce Exp (7.0% yr) 235,185,000 251,853,000 264,842,000 283,058,000 2,149,468,790 Capital Improvement Program 95,990,000 80,204,000 42,595,000 50,949,000 1,298,578,900 Repl, Rehab & Refurb 93,209,000 94,109,000 130,317,000 187,551,000 599,003,000 COP Service (5.0%, 30 yrs) 104,010,420 103,942,793 103,974,143 108,389,590 1,029,996,227 Other Requirements 2,156,200 2,156,200 2,156,200 2,156,200 58,502,000 Requirements 530,550,620 532,264,993 543,884,343 632,103,790 5,135,548,917 Revenues-Requirements (12,071,150) 9,782,667 33,374,087 (38,640,270) (67,403,767) Accumulated Funds: Beginning of Year 547,167,540 535,096,390 544,879,057 578,253,144 534,342,970 End of Year 535,096,390 544,879,057 578,253,144 539,612,873 578,253,144 Consolidated Reserve Policy 532,251,420 534,615,793 530,411,143 482,427,591 $530,411,143 Over (Under) Reserve Policy 2,844,970 10,263,264 47,842,000 57,185,282 Sewer Service User Fees: Avg SFR Annual User Fee $393.30 $409.03 $425.39 $442.41 Percentage Change 4.00%4.00%4.00%4.00% Equivalent Dwelling Units 942,814 945,643 948,480 951,325 SFR Connection Fee $4,589 $4,818 $5,059 $5,312 Outstanding COPs $1,309,396,000 $1,267,000,000 $1,222,685,000 $1,171,917,000 Reserve Policy 50% Next Year Operating 117,593,000 125,927,000 132,421,000 141,529,000 10% Next Year Operating 23,519,000 25,185,000 26,484,000 28,306,000 100% Next Year AUG COP Svc.104,010,420 103,942,793 103,974,143 108,389,590 50% average CIP bal to 2020 73,216,000 68,569,000 59,625,000 - Short term CIP, GWRS - - - - DSR @ 10% Outstanding COPs 130,940,000 126,700,000 122,269,000 117,192,000 SFI @ $57mm INPUT 57,000,000 57,000,000 57,000,000 57,000,001 Repl & Refurb @ 2%/yr 65,973,000 67,292,000 68,638,000 70,011,000 Total 572,251,420 574,615,793 570,411,143 522,427,591 COP Ratios Sr Lien Coverge, Min 1.25 2.62 2.69 2.89 2.75 Capital Improvement Project Summary A - 4 Original FY 2011-12 Budget 119,922,400 % Change Projects Completed or Canceled (2,189,000) (1.83%) New Projects 372,000 0.31% Additions to Existing Projects 56,428,000 47.05% Deductions from Existing Projects (46,043,000) (38.39%) Changes to Capital Equipment 679,500 0.57% Revised FY 2007-08 Budget 129,169,900 7.71% Original Total Budget 2,965,626,000 % Change Projects Completed or Canceled (317,322,000) (10.70%) New Projects 372,000 0.01% Additions to Existing Projects 173,309,000 5.84% Deductions from Existing Projects (20,009,000) (0.67%) Changes to Capital Equipment - 0.00% Revised Total Budget 2,801,976,000 (5.52%) 2011-12 Budget Update A – 5 Project Summary FY 2011-12 2011-12 Replacement/ Improved Additional Cashflow Item Rehabilitation Treatment Capacity Support Budget Collections Facilities 28,061,500 237,350 2,855,800 97,350 31,252,000 Headworks 3,685,000 1,219,000 - - 4,904,000 Primary Treatment 298,000 768,000 - - 1,066,000 Secondary Treatment 306,000 7,524,370 2,940,630 - 10,771,000 Solids Handling & Digestion 21,758,000 2,969,700 2,575,300 - 27,303,000 Ocean Outfall Systems 4,898,000 - - - 4,898,000 Utility Systems 6,002,450 5,204,150 382,400 560,000 12,149,000 Odor Control Related Projects 2,079,600 436,400 - - 2,516,000 Plant Automation & Computerization 1,908,000 - 375,000 1,904,000 4,187,000 Process Related Special Projects - - - 1,992,000 1,992,000 Miscellaneous & Support Projects 18,443,900 1,033,050 50,000 2,644,050 22,171,000 Water Management Projects - - 100,000 - 100,000 Strategic & Master Planning - - - 80,000 80,000 Research & Development 690,000 386,000 286,000 2,297,000 3,659,000 Equipment 530,475 530,475 530,475 530,475 2,121,900 Total 88,660,925 20,308,495 10,095,605 10,104,875 129,169,900 Capital Improvement Expenditure Graphs A - 6 $4,904,000Headworks3.8% $2,121,900Equipment1.7% $31,2522,000Collections Facilities24.2% $1,066,000Primary Treatment0.8% $80,000Strategic & Master Planning 0.1%$27,303,000Solids Handling & Digestion21.1% $2,516,000Odor Control Projects2.0% $10,771,000Secondary Treatment8.3% $1,992,000Process Related Projects1.5% $12,149,000Utility Systems9.4% $4,898,000Ocean Outfall Systems3.8%$22,171,000Miscellaneous &Support Projects17.2% $100,000Water Management Projects 0.1% $4,187,000Plant Automation & Computerization3.2% $3,659,000Research & Development2.8% Total FY 2011-12 Capital Improvement Expenditure by Process - $129,169,900 $88,660,925Replacement / Rehabilitation68.6% $20,308,495 Improved Treatment15.7% $10,095,605 Additional Capacity7.8% $10,104,875Support7.8% Total FY 2011-12 Capital Improvement Expenditure by Type - $129,169,900 Summary of Capital Requirements A – 7 Summary of Capital Requirements – Collection System Improvement Projects Original Revised Original Revised Total Total 2011-12 2011-12 Project Project Project Cashflow Cashflow Item Number Budget Budget Budget Budget Number Collections Raitt and Bristol Street Sewer Extension 01-101 9,906,000 9,906,000 1 Santa Ana Trunk Sewer Rehab. 01-17 21,156,000 21,156,000 840,000 518,000 2 Santa Ana River Interceptor Realignment and Prot. 02-41 11,404,000 11,404,000 956,000 1,044,000 3 Santa Ana River Interceptor (SARI) Inspection and Mitigation 02-41-7 900,000 900,000 200,000 402,000 4 Taft Branch Improvements 02-49 3,143,000 3,143,000 5 Newhope-Placentia Trunk Grade Seperation Replacement 02-65 2,392,000 5,928,000 138,000 162,000 6 Fullerton-Brea Interceptor Sewer Relief 02-71 2,287,000 2,287,000 30,000 30,000 7 Newhope-Placentia Trunk Replacement 02-72 66,696,000 66,696,000 8 Yorba Linda Pumping Station Abandonment 02-73 9,566,000 9,566,000 9 Rehabilitation of the Westside Pump Station 03-52 11,668,000 12,053,000 252,000 208,000 10 Westside Relief Interceptor Relief 03-55 26,482,000 26,482,000 11 Rehabilitation of Magnolia Trunk Sewer 03-58 26,721,000 22,132,000 3,448,000 9,727,000 12 Miller-Holder Trunk Sewer Relief 03-59 17,324,000 17,324,000 13 Beach Trunk/Knott Interceptor Sewer Relief 03-60 25,055,000 25,055,000 14 Miller-Holder and Knott Trunks Odor Control Project 03-61 1,795,000 1,795,000 15 Seal Beach Pumping Station Upgrade and Rehabilitation 03-62 14,023,000 26,356,000 16 Seal Beach Pumping Station Force Main Rehabilitation 03-63 11,032,000 152,000 Canceled Rehabilitation of 3-6, 3-8, and 3-21-1 Sewers 03-64 71,312,000 71,312,000 17 Balboa Trunk Sewer Rehabilitation 05-47 8,514,000 9,446,000 2,190,000 439,000 18 Replacement of the Bitter Point Pump Station 05-49 32,084,000 31,693,000 3,882,000 9,026,000 19 Replacement of the Rocky Point Pump Station 05-50 20,360,000 20,751,000 565,000 3,507,000 20 Bitter Point Force Main Rehabilitation 05-58 25,883,000 40,781,000 978,000 2,894,000 21 Newport Force Main Condition Assessment 05-60 22,591,000 23,779,000 633,000 450,000 22 Bayside Drive Improvement 05-61 3,415,000 Complete Dover Drive Trunk Sewer Relief 05-63 13,346,000 13,346,000 9,120,000 533,000 23 Lido Pumping Station Upgrade and Rehabilitation 05-65 1,515,000 114,000 Canceled Crystal Cove Pumping Station Upgrade and Rehabilitation 05-66 7,379,000 7,379,000 24 Bay Bridge Pumping Station Upgrade and Rehabilitation 05-67 46,852,000 46,852,000 25 District 6 Trunk Sewer Relief 06-17 5,126,000 5,126,000 48,000 48,000 26 Southwest Costa Mesa Trunk 06-19 13,309,000 15,240,000 491,000 330,000 27 Gisler-Redhill System Improvements, Reach B 07-37 9,622,000 11,002,000 6,869,000 1,080,000 28 Rehabilitation of College Ave. Pump Station 07-47 11,445,000 Complete Browning Subtrunk Sewer Relief 07-60 11,172,000 11,172,000 29 County Island Annexation and CEQA Documentation 07-61 300,000 Complete Continued Summary of Capital Requirements A - 8 Summary of Capital Requirements – Collection System Improvement Projects Original Revised Original Revised Total Total 2011-12 2011-12 Project Project Project Cashflow Cashflow Item Number Budget Budget Budget Budget Number Collections (Continued) Von Karman Trunk Sewer Relief 07-62 433,000 433,000 30 MacArthur Pumping Station Upgrade and Rehabilitation 07-63 7,028,000 7,028,000 31 Edinger/Bolsa Chica Trunk Improvements 11-25 6,030,000 6,030,000 32 Coast Trunk Sewer Rehabilitation 11-26 9,121,000 Complete Wintersburg Channel Siphon Protection Project 11-32 75,000 75,000 65,000 33 Edinger Pumping Station Upgrade and Rehabilitation 11-33 11,474,000 11,474,000 34 North County Collections Yard 15-04 12,270,000 16,000 Canceled Facilities Engineering Projects - Collections FE-Collect 8,520,000 8,520,000 325,000 649,000 35 Replacement of the Ellis Ave. Pump Stn I-10 79,337,000 Complete Siphon and Manhole Upgrade Feasibility Study SP-138 300,000 300,000 150,000 140,000 36 Total Collections Projects 700,363,000 603,922,000 31,397,000 31,252,000 Summary of Capital Requirements A – 9 Summary of Capital Requirements –Treatment System Improvement Projects Original Revised Original Revised Total Total 2011-12 2011-12 Project Project Project Cashflow Cashflow Item Number Budget Budget Budget Budget Number Headworks Headworks Rehab. and Expansion at Plant No. 1 P1-105 43,404,000 43,404,000 485,000 37 Headworks Expansion P1-120 222,804,000 222,804,000 38 Headworks Rehabilitation/Refurbishment P1-71 8,374,000 7,955,000 388,000 28,000 39 Headworks Improvements at Plant No. 2 P2-66 257,733,000 257,733,000 8,609,000 4,876,000 40 Headworks Total 532,315,000 531,896,000 9,482,000 4,904,000 Primary Treatment Joint GWRS Microfiltration Backwash Redirection Project J-36-1 1,311,000 12,000 41 Primary Clarifiers 6-31 Evaluation and Optimization Study P1-116 150,000 1,171,000 756,000 42 Primary Effluent Pipeline Joint Repairs P1-118 3,246,000 3,246,000 43 Primary Treatment Rehab/Refurb P2-80 38,923,000 194,000 Complete Primary Treatment Area Rehabilitation Study SP-137 300,000 300,000 150,000 298,000 44 54-inch Primary Effluent Butterfly Valve Use Study SP-144 25,000 Complete Primary Treatment Total 42,644,000 6,028,000 344,000 1,066,000 Secondary Treatment New Secondary Treatment System at Plant No. 1 P1-102 260,300,000 255,644,000 5,681,000 8,911,000 45 Activated Sludge Plant No.1 Upgrades P1-117 20,673,000 Canceled Activated Sludge Plant Rehabilitation P1-82 46,761,000 Complete Trickling Filters at Plant No. 2 P2-90 223,238,000 220,206,000 233,000 1,554,000 46 Oxygen Plant Rehabilitation at Plant No. 2 SP-129 2,500,000 2,500,000 1,562,000 306,000 47 Secondary Treatment Total 553,472,000 478,350,000 7,476,000 10,771,000 Solids Handling & Digestion Sludge Digester Rehabilitation at Plant 1 P1-100 55,515,000 55,515,000 18,314,000 16,575,000 48 Sludge Dewatering and Odor control at Plant 1 P1-101 143,549,000 147,270,000 6,397,000 3,962,000 49 Digester Ferric Chloride System Rehabilitation P2-105 2,627,000 2,905,000 462,000 657,000 50 Demolition of Digesters A and B P2-110 4,756,000 5,405,000 51 Solids Storage Silo Rehabilitation P2-114 37,604,000 37,604,000 52 Solids Thickening and Processing Upgrades P2-89 61,135,000 57,796,000 1,919,000 3,166,000 53 Plant No. 2 Primary Sludge Feed System Project P2-91 26,524,000 337,000 Complete Digester Rehabilitation at Plant No. 2 P2-91-1 45,637,000 45,637,000 444,000 54 Sludge Dewatering and Odor Control at Plant 2 P2-92 63,183,000 64,868,000 570,000 2,943,000 55 Replacement of Drying Beds and Truck Wash at Plant P2-97 4,443,000 277,000 Canceled Food Waste Collection and Treatment Study SP-171 100,000 Canceled Digesters 5 and 6 Conversion and Use Study SP-172 100,000 100,000 56 Solids Handling & Digestion Total 445,173,000 417,100,000 28,720,000 27,303,000 Summary of Capital Requirements A - 10 Summary of Capital Requirements –Treatment System Improvement Projects Original Revised Original Revised Total Total 2011-12 2011-12 Project Project Project Cashflow Cashflow Item Number Budget Budget Budget Budget Number Ocean Outfall Systems Final Effluent Sampler and Building Area Upgrades J-110 2,661,000 12,585,000 331,000 933,000 57 Outfall Land Section and OOBS Piping Rehabilitation J-112 7,540,000 21,739,000 1,043,000 3,901,000 58 Outfall Piping Rehabilitation Program Study J-113 370,000 80,000 Complete Ocean Outfall Booster Station Rehabilitation (Electrical) J-114 13,059,000 Complete 66-inch Interplant Effluent Pipeline Rehabilitation J-116 62,052,000 72,517,000 59 Ocean Outfall Booster Station Rehabilitation (Mechanical) J-117 4,559,000 15,402,000 60 Outfall Beach Box Rehabilitation Evaluation J-119 330,000 330,000 64,000 61 Ocean Outfall Easement Renewal SP-143 25,000 Canceled Outfall Pumping Cooling Water Bypass Study SP-154 25,000 25,000 Canceled Alternative Effluent Disinfection Study SP-156 100,000 100,000 62 Santa Ana River Flap Gates Access Study SP-159 50,000 Canceled Interplant Effluent Pipeline Alternate Use Study SP-164 10,000 Canceled Ocean Outfall Systems Total 90,781,000 122,673,000 1,479,000 4,898,000 Utility Systems Interplant Gas Line Rehabilitation J-106 4,504,000 5,271,000 147,000 608,000 63 Cengen Cooling Water System Replacement J-109 10,023,000 12,628,000 2,739,000 2,657,000 64 Cengen Emissions Control Project J-111 30,279,000 30,279,000 2,381,000 2,897,000 65 UPS System Upgrades J-121 13,012,000 13,012,000 66 Air Quality Improvements J-79 11,668,000 11,596,000 169,000 12,000 67 Central Generation Automation J-79-1 21,049,000 23,261,000 79,000 2,389,000 68 Electrical Power Distribution System Improvements J-98 9,773,000 9,773,000 69 Power Building 3A Backup Power Reliability Project P1-111 502,000 502,000 64,000 150,000 70 Plant Water System Rehabilitation at Plant No.1 P1-112 3,344,000 10,029,000 138,000 769,000 71 Flare Addition P1-119 2,083,000 2,083,000 72 Gas Compressor Upgrades P1-121 27,181,000 27,181,000 73 Plant 1 66kV Substation P1-97 15,153,000 15,169,000 58,000 74 Plant Water System Rehabilitation at Plant No.2 P2-101 3,659,000 3,864,000 294,000 80,000 75 Additional High Pressure Flare P2-103 1,993,000 2,116,000 76 15 kV Upgrades at Plant No. 2 P2-108 3,238,000 5,958,000 394,000 101,000 77 Gas Compressor Upgrades P2-109 22,362,000 22,362,000 78 SCE Feed Reliability Improvements P2-111 22,490,000 22,490,000 79 Energy Load Management and Shedding System P2-112 16,517,000 Canceled Gas Holder Demolition P2-113 1,026,000 Canceled Secondary Area Cable Tray Upgrades P2-116 2,154,000 2,154,000 80 Headworks Area Cable Tray Upgrades P2-117 3,015,000 3,015,000 81 Fuel Cell Feasibility Study SP-132 100,000 Complete Fuel Cell Hydrogen Gas Generation Research SP-134 600,000 Complete Continued Summary of Capital Requirements A – 11 Summary of Capital Requirements –Treatment System Improvement Projects Original Revised Original Revised Total Total 2011-12 2011-12 Project Project Project Cashflow Cashflow Item Number Budget Budget Budget Budget Number Utility Systems Projects (Continued) Digester Gas Facilities Assessment SP-141 100,000 700,000 50,000 700,000 82 Utility Water Systems Study SP-146 475,000 800,000 200,000 800,000 83 Plant Air System Master Plan SP-148 220,000 340,000 100,000 340,000 84 Electrical System Base Map SP-149 220,000 250,000 100,000 85 Uninterruptible Power System (UPS) Study SP-150 100,000 342,000 50,000 342,000 86 Sidestream Pumping System and Water Characterization Study SP-155 170,000 246,000 246,000 87 Standby Power Generation Study SP-158 100,000 400,000 88 Communication Radio System Replacement SP-165 900,000 Complete Power Outage Recovery Plan SP-170 100,000 100,000 89 Potable Water Quality Study SP-175 25,000 50,000 90 Utility Systems Total 228,135,000 225,971,000 6,905,000 12,149,000 Odor Control Related Projects Coyote Hills Golf Course Odor Control Station 02-74 8,365,000 8,365,000 91 Rehabilitation of Odor Control Facilities J-71-8 44,124,000 44,124,000 6,783,000 168,000 92 Trickling Filter Odor Control at Plant No. 1 P1-113 5,182,000 5,821,000 628,000 204,000 93 Primary Scrubber Rehabilitation at Plant No.1 P1-114 41,732,000 41,732,000 94 Solids Storage Building Odor Control Project P2-102 10,720,000 816,000 Canceled Chemical Scrubber Conversions and Piping System Improvements P2-106 3,261,000 2,807,000 2,032,000 2,046,000 95 Primary Treatment Odor Control Upgrades P2-98 35,691,000 35,691,000 2,844,000 96 Wastehauler Odor Control SP-140 100,000 100,000 50,000 98,000 97 Odor Control Master Plan SP-166 2,400,000 1,200,000 98 Odor Control Related Projects Total 151,575,000 139,840,000 13,153,000 2,516,000 Process Related Special Projects Plant O&M Manual & SOP Project - Phase I SP-53 3,750,000 Complete Corrosion Management SP-68-1 4,667,000 14,372,000 118,000 1,992,000 99 Special Projects: Biotrickling Filter (BTF) SP-90-7 29,000 12,000 Complete Process Related Special Projects Total 8,446,000 14,372,000 130,000 1,992,000 Plant Automation & Computerization Power Monitoring and Control Systems J-33-3 12,013,000 13,050,000 5,382,000 1,330,000 100 Strategic Information Architecture (SIA) SP-03 1,995,000 1,995,000 250,000 288,000 101 Internet/Intranet Development SP-09 650,000 650,000 60,000 24,000 102 CMMS System Replacement SP-100 3,789,000 5,000,000 1,156,000 1,500,000 103 PDS2D Software Replacement SP-103 250,000 250,000 50,000 115,000 104 Geographic Information System SP-15 4,047,000 4,047,000 690,000 350,000 105 Process SCADA Modbus Ethernet Redundancy SP-160 1,055,000 Canceled VAX Server Migration to Modbus Ethernet SP-161 1,146,000 Canceled Network Equipment Upgrade SP-89 1,157,000 2,905,000 140,000 580,000 106 Plant Automation & Computerization Total 26,102,000 27,897,000 7,728,000 4,187,000 Summary of Capital Requirements A - 12 Summary of Capital Requirements –Treatment System Improvement Projects Original Revised Original Revised Total Total 2011-12 2011-12 Project Project Project Cashflow Cashflow Item Number Budget Budget Budget Budget Number Miscellaneous & Support Projects Facilities Engineering Projects - Joint FE-J 23,910,000 23,910,000 1,290,000 81,000 107 Facilities Engineering Projects - Plant 1 FE-P1 20,910,000 20,910,000 1,127,000 3,307,000 108 Facilities Engineering Projects - Plant 2 FE-P2 20,910,000 20,910,000 757,000 3,499,000 109 Permanent Upgrades To Plant Security Barriers J-108 2,385,000 3,218,000 108,000 594,000 110 Emergency Operation Center J-115 100,000 150,000 111 Contracts and Purchasing Building Extension J-118 3,589,000 3,589,000 112 Operations Center Entrance/Building Repairs J-122 2,325,000 2,325,000 1,150,000 381,000 113 Title 24 Access Compliance Improvements at Plant No. 1 P1-115 10,000,000 28,778,000 1,085,000 2,009,000 114 Plant No. 2 Landscaping Project P2-96 545,000 545,000 200,000 65,000 115 Integrated Security Access Control System SP-128 450,000 900,000 90,000 160,000 116 2009 NPDES Permit Renewal SP-133 150,000 150,000 50,000 117 Software and Computer Equipment Replacement Project SP-135 2,700,000 2,700,000 270,000 270,000 118 Land Records Information System SP-136 410,000 410,000 195,000 122,000 119 Roof Condition Assessment and Rehabilitation Study SP-142 75,000 36,000 Canceled Facility Assets Assessment SP-145 5,000,000 3,260,000 1,500,000 250,000 120 Plant 2 WSSPS Motor Location SP-145-2 72,000 72,000 121 Administrative Facilities Master Plan SP-147 250,000 250,000 100,000 250,000 122 Laboratory Water Piping Replacement SP-153 1,005,000 1,005,000 112,000 361,000 123 Stormwater Master Plan SP-167 300,000 300,000 124 Small Cap. Equip. Replacement Project SP-34 11,700,000 20,200,000 1,700,000 10,350,000 125 Asset Management Program SP-68-2 4,800,000 4,800,000 363,000 350,000 126 Warehouse Reinvention Project SP-77 600,000 Complete Miscellaneous & Support Projects Total 112,114,000 138,382,000 10,083,000 22,171,000 Water Management Projects Initial Expansion of the Groundwater Replenishment System SP-139 300,000 300,000 100,000 100,000 127 Effluent Reuse Study SP-173 60,000 60,000 128 Water Management Projects Total 360,000 360,000 100,000 100,000 Strategic & Master Planning Orange County Biosolids Production Siting Study SP-105 400,000 Complete Landscape Master Plan SP-145-4 150,000 129 Uniform Level of Service Standards SP-151 80,000 80,000 40,000 80,000 130 Climate Change Impact Study SP-152 100,000 100,000 50,000 131 Plant No. 2 Soil Liquefaction Study SP-177 250,000 173,000 132 Strategic & Master Planning Total 830,000 503,000 90,000 80,000 Summary of Capital Requirements A – 13 Summary of Capital Requirements –Treatment System Improvement Projects Original Revised Original Revised Total Total 2011-12 2011-12 Project Project Project Cashflow Cashflow Item Number Budget Budget Budget Budget Number Research & Development Process SCADA Replacement J-120 20,283,000 24,680,000 133 Fall Protection Improvements at Plants Nos.1 and 2 J-123 3,399,000 440,000 134 Process SCADA Network Upgrades P2-107 8,697,000 22,895,000 135 USBR Brine Management Grant Project SP-116 315,000 130,000 Complete Research Strategic Plan SP-120 365,000 365,000 18,000 10,000 136 Superoxygenation of Primary Influent SP-121 850,000 850,000 245,000 165,000 137 Operational Research Projects (annual allocation) SP-125 10,040,000 10,000,000 1,000,000 1,000,000 138 Facilities-Wide Safety Assessment SP-145-1 300,000 300,000 139 Process SCADA Link to Pump Stations SP-157 100,000 193,000 140 North County Yard Information Continuity SP-162 666,000 Canceled Data Storage Addition SP-163 444,000 444,000 444,000 141 Treatment Plant Hydraulic Assessment SP-168 300,000 300,000 300,000 142 Information Systems Upgrades and Replacements SP-169 12,510,000 12,510,000 1,000,000 143 Information Technology Data Center Replacement SP-174 2,566,000 2,566,000 144 Information Technology Workroom Replacement SP-176 180,000 180,000 145 Research & Development Projects Total 57,316,000 78,682,000 1,393,000 3,659,000 Total Treatment and Disposal Projects 2,249,263,000 2,182,054,000 87,083,000 95,796,000 Capital Equipment Purchases 16,000,000 16,000,000 1,442,400 2,121,900 Total Collection, Treatment and Disposal Projects $2,965,626,000 $2,801,976,000 $119,922,400 $129,169,900 CIP New Project Descriptions Project Name & Number Project Category Plant 2 WSSPS Motor Location - SP-145-2 Project Budget:Miscellaneous & Support Projects $72,000 DescriptionThis study will evaluate the potential for the Plant No. 2 waste sidestream pumping station (WSSPS) 2A pumps and motors to become damaged by flooding, and provide alternatives to the existing configuration. This study will evaluate access limitations created by area classification modifications made by the J-35 Project. JustificationThe pumps and motor for the waste sidestream pumping station (WSSPS) 2A are located in a recessed area within Tremblay Tunnel subject to flooding and have been flooded at least three times in the past. This occurred recently due to a water pipeline leak. The tunnel sump pumps failed to prevent inundation. It is possible that the pump shaft could be extended to move the motors above the tunnel, or the pump/motor assembly might be replaced with a dry pit submersible unit. Area classification modifications made by the J-35 Project impacted access to the pump and motor. This item is based on OCSD 2009 Facilities Master Plan Recommendation 040902. Project Name & Number Project Category Facilities-Wide Safety Assessment - SP-145-1 Project Budget:Safety & Security Improvements $300,000 Description This study will provide a facility-wide assessment of the significant structural safety issues (ladders, handrail, hatches, etc.) potentially affecting the CIP program. The significance is determined by the potential for: worker injury, OCSD liability, or high mitigation cost. This study is not intended to address non-structural safety issues such as training, Personal Protective Equipment (PPE), or operational plans. JustificationOCSD facilities have been constructed with varying compliance with safety codes. While the safety issues created by the configurations may have a low probability of causing injury, the consequence could be high in terms of injury and OCSD liability. The cost to mitigate these structural issues after construction is high. Dealing with these issues on a case-by-case basis is not cost effective. OCSD would benefit greatly by having consistent facilities-wide structural safety standards. A - 14 FY 2011-12 Budget Update A - 15 This page was intentionally left blank Proposed Equipment Budget Summary A - 16 Proposed Equipment Budget 2011-12 Department Trucks & Vehicles 09410000 Other Mobile Eq 09410001 Machine Eq & Tools 09410002 Comm Equipment 09410003 Contracts, Purchasing, & Materials Management - - - - Information Technology - - - - Equipment / Rebuild 852,200 33,300 - - Mechanical & Reliability Maintenance - - 26,600 - Instrumentation & Electrical Maintenance - - - 35,000 Environmental Laboratory & Ocean Monitoring - - - - Total Proposed Capital Equipment 852,200 33,300 26,600 35,000 FY 2011-12 Budget Update A - 17 Proposed Equipment Budget 2011-12 Department Instr / Test Equipment 09410004 Safety & Traffic Eq 09410005 Office Fix & Eq 09410006 Computer Equipment 09410007 2011-12 Proposed Budget Contracts, Purchasing, & Materials Management - 65,300 - - 65,300 Information Technology - - - 803,400 803,400 Equipment / Rebuild - - - - 885,500 Mechanical & Reliability Maintenance 27,000 - - - 53,600 Instrumentation & Electrical Maintenance 129,700 - - - 164,700 Environmental Laboratory & Ocean Monitoring 149,400 - - - 149,400 Total Proposed Capital Equipment 306,100 65,300 - 803,400 2,121,900 Proposed Equipment Budget Detail A - 18 Proposed Equipment Budget Detail Division Equipment Type Proposed Equip. Budget Parts Picker Jack (2)65,300 Total 65,300 Video and Storage Equipment ($30,000 Re-budget) - process areas 60,000 Video Storage Equipment (Re-budget) - pump stations 20,000 Off-the-Shelf Software for Source Control Application (Re-budget)300,000 Data Communication Device/Router 17,700 Hydraulic Modeling & Viewing Software 51,700 Server & Licenses - SCADA Modernization 354,000 Total 803,400 Pickup Truck - Replace V# 0493 43,600 Pickup Truck - Replace V# 0440 43,600 Truck with 5,000 lb Crane - Replace V# 0399 81,100 Truck Crane - Replace V# 0505 509,800 Sport Utility Vehicle - Replace V# 0484 39,600 Twelve-Passenger Van Pool Van - Replace V# 0547 42,300 HVAC Utility Truck - Replace V# 0421 45,000 Pickup Truck - Replace V# 0459 33,300 Pickup Truck - Replace V# 0454 47,200 Total 885,500 Fluke Ti55 Infrared Camera 27,000 Portable Jetter 26,600 Total 53,600 Programmable Logic Controller Test Station (2)48,500 2,000 kW Portable Electric Load Bank 61,500 Electric Megger 5,600 Portable Vibration Sensor Calibrator 14,100 PLC Rack Upgrade Ethernet Communication Module (7)35,000 Total 164,700 Automated Sample Digestion System 28,900 Auto-titrator 36,000 OI Analytical Autosampler Replacement 25,000 Accelerated Solvent Extractor, ASE Replacement 42,000 Blue M Ultra-Temp Convection Oven Replacement 17,500 Total 149,400 Total Proposed 2011-12 CORF Equipment Budget 2,121,900 230 - Contracts, Purchasing, & Materials Management 850 - Mechanical & Reliability Maintenance 320 - Equipment / Rebuild 250 - Information Technology 890 - Environmental Laboratory & Ocean Monitoring 860 - Instrumentation & Electrical Maintenance FY 2011-12 Budget Update A - 19 Listing of Proposed Purchases Over $100,000 Resolution 07-04, “Establishing Policies and Procedures For: The Award of Purchase Orders and Contracts; Public Works Project Contracts; Professional Services Contracts; and Delegation of Authority to Implement Said Policies and Procedure,” was adopted by the Board on February 28, 2007. Article IV, Section 4.03(B) of the Resolution provides that, “Purchases of supplies, materials, equipment or services, including Professional Service Consultants…as outlined in each Fiscal Year’s annual budget, to include capital equipment, shall be bid and awarded directly by the Contracts/Purchasing Manager.” The annual authorization amount for a multi-year contract is determined in the year the contract is bid/let. Therefore, the contract authorization amount indicated herein is valid only when the contract is bid/let in FY 2011-12. Following are services or supply items identified in the budget process with a cost greater than $100,000. Staff requests the Board approve the purchase of these items and those listed in the Proposed Equipment Budget Detail listing without further Board action in accordance with the referenced policy. Contract Change OrderDescription of Services or Supplies Division Authorization Contingency (1) Chemical ContractsAnionic polymers for primary treatment 830/840 413,000$ 0% (2)Cationic polymers for solids dewatering and coagulation 830/840 1,700,000 0% (2)Ferric chloride for primary treatment 830/840 5,834,000 0% (2)Caustic soda (50%) for odor and corrosion control 340 270,700 0% (2)Caustic soda (25%) for odor and corrosion control 830/840 346,500 0% (2)Hydrogen peroxide for odor control 830 1,321,000 0% (2)Magnesium hydroxide for odor and corrosion control 340 2,646,000 0% (2)Ferrous chloride for odor and corrosion control 340 3,127,690 0% (2)Calcium nitrate for odor and corrosion control 340 966,000 0% (2)Bleach for disinfection and odor control 830/840 3,557,400 0% (2)Sodium bisulfite for dechlorination 840 427,900 0% (2) Other ContractsLegislative/lobbying services 140 185,000 10%Uniform contract 230 300,000 10%IBM Software Maintenance 250 210,500 10%Microsoft Enterprise License Agreement 250 218,500 10%Oracle Software Maintenance 250 138,000 10%License & Service Maintenance of Plant Security Systems 250 110,000 10%Security services contract 260 500,000 10%Hazardous waste services 260 166,800 10%Vehicle fuels and lubricants 320 200,000 10%Digester cleaning and disposal 330 1,422,710 10%Replacing manhole frames & covers 330 233,350 10%Local & Regional Sewer Line Cleaning 330 500,000 10%Manhole structural repair and coating services 330 300,000 10%Sewer repair / relining 330 230,000 10%CCTV Services for sewers 330 360,000 10%Purchasing manhole frames/covers 330 197,500 10%Sewer spot repairs 330 100,000 10%Easement/right-of-way maintenance 330 150,000 10%Raising manholes for City/County street overlays 330 150,000 10%Underground emergency repairs for sinkholes 330 200,000 10%Groundskeeping services contract 330 170,000 10%Custodial services contract 330 470,000 10%Process area preventive maintenance/painting program 330 750,000 10%Dig Alert and street overlay program contract 340 100,000 10%Air quality compliance testing 790 135,000 10%Air quality emissions and permit fees 790 200,000 10%NPDES permit fees 790 325,980 10%Core OMP benthic infauna taxonomy 890 152,400 10%Solids removal 830/840 18,500,000 10%Grit and screenings hauling and disposal 830/840 700,000 10%Oxygen plant services for secondary treatment 840 478,000 10%City water - Fountain Valley 830 320,000 10%City water - Huntington Beach 840 219,000 10%Carbon replacement - odor control 830 431,210 10%CenGen heat recovery units retubing 860 120,000 10%Carbon changes for CenGen Di-Gas Cleaning 860 175,000 10%Electric arc flash study (OSHA requirement)860 200,000 10%Natural gas 830/840/860 678,000 10% GAP water 860 900,000 10% Total 51,507,140$ Note 1: The change order contingency is for the lifetime of the contract and is based on the annual authorized amount in the year the contract is bid/let. [For example, a three-year contract which is authorized for an annual contract amount of $300,000 with a 10% change order contingency must be initially bid/let for less than or equal to $300,000; over the life of the contract, the total change orders may not exceed 10% of $300,000, or $30,000.] Note 2: Once a chemical contract is bid/let, there is no increase in unit cost allowed without Board approval. Self-Funded Insurance Plans A - 20 SELF-FUNDED INSURANCE PLANS The General Liability and Property program and the Workers’ Compensation program provide for the District to be partially self-insured for general liability and workers’ compensation. The in-lieu premiums charged to the operating divisions are the revenue source for these programs. Expenses primarily consist of settlement claims, legal fees and excess loss insurance premiums. Ending Reserve Balances are projected at $57 million. General Liability and Property  The District’s current excess general liability insurance coverage is $30 million per occurrence with an annual aggregate limit and with a self-insured retention of $250,000 and $500,000 for EPLI.  The District’s current property insurance coverage is $1 billion for perils of fire and $300 million for perils of flood, subject to a self-insured retention of 5 percent per unit of insurance up to $250,000 for fire and $100,000 for flood. The District is completely self-insured for earthquake.  In order to maintain the reserve balance of $55 million for the General Liability and Property program, appropriations for in-lieu premiums charged to operating divisions are recommended at $1,082,100 for FY 2011-12. Workers’ Compensation  The District’s current excess workers’ compensation coverage has unlimited statutory coverage per occurrence and $4.5 million employer’s liability per employee with a self-insured retention of $500,000 per person per occurrence.  In order to maintain the reserve balance of $2 million for the Workers’ Compensation program, appropriations for in-lieu premiums charged to operating divisions are recommended at $550,000 for FY 2011-12. FY 2011-12 Self-Insurance Program Budget General Liability Workers' Total & Property Compensation Self-Insurance DESCRIPTION OR ACCOUNT TITLE Program Program Program Beginning Reserves 55,500,000$ 2,000,000$ 57,500,000$ Revenues In-Lieu Premiums 1,082,100 550,000 1,632,100 Claims Reimbursement from Other Funds - - - Service Department Allocation 24,100 - 24,100 Total Revenues 1,106,200 550,000 1,656,200 Expenses Benefits/Claims 200,000 250,000 450,000 Contractual Services 1,200 45,000 46,200 Legal Services 300,000 35,000 335,000 Professional Services 5,000 10,000 15,000 Policy Premium Expense 1,100,000 210,000 1,310,000 Total Expenses 1,606,200 550,000 2,156,200 Excess Revenue (Expenses)(500,000) - (500,000) Ending Reserves 55,000,000$ 2,000,000$ 57,000,000$ Historical Staffing Summary A – 21 Authorized Authorized Authorized Authorized Proposed Department and Division Name FTE FTE FTE FTEs FTEs2007-08 2008-09 2009-10 2010-11 2011-12 Office of the General Manager General Management Administration 6.50 6.50 4.00 5.00 3.00 Assistant General Manager Administration 3.00 3.00 1.00 - - Board Services 5.25 5.25 2.00 2.00 2.00 Public Affairs 7.00 7.00 8.00 8.00 8.00 Department Subtotal 21.75 21.75 15.00 15.00 13.00 Human Resources Department Human Resources - - - - 20.00 Department Subtotal - - - - 20.00 Administrative Services Department Administrative Services 2.00 2.00 3.00 5.00 5.00 Financial Management 18.00 18.00 19.00 18.00 17.00 Contracts, Purchasing & Materials Management 31.50 29.50 28.75 28.75 30.75 Human Resources 16.00 16.00 17.00 27.00 - Information Technology 30.00 31.00 32.00 33.00 45.00 Safety & Health 8.50 8.00 9.00 - - Risk Management - - - - 13.00 Department Subtotal 106.00 104.50 108.75 111.75 110.75 Facilities Support Services Department Facilities Support Services Administration - - - - 3.75 Equipment / Rebuild - - - - 18.00 Facilities Engineering - - - - 13.00 Collection Facilities - - - - 49.00 Department Subtotal - - - - 83.75 Technical Services Department Technical Services Administration 3.00 4.00 4.00 4.00 - Environmental Compliance & Regulatory Affairs 18.50 16.50 16.00 15.00 - Environmental Laboratory & Ocean Monitoring 48.50 46.50 46.50 43.50 - Source Control 39.00 40.00 39.00 40.00 - Department Subtotal 109.00 107.00 105.50 102.50 - Engineering Department Engineering Administration 2.00 2.00 2.00 2.00 2.00 Planning 16.00 19.00 17.00 9.00 12.00 Project Management Office 17.00 17.00 19.00 18.00 17.00 Engineering & Construction 58.50 60.50 57.50 57.50 58.50 Facilities Engineering 11.00 10.00 10.00 9.00 - Asset Management - - - 25.00 6.00 Environmental Compliance - - - - 33.00 Department Subtotal 104.50 108.50 105.50 120.50 128.50 Operations & Maintenance Department Operations & Maintenance Administration 2.00 2.00 2.00 3.00 2.75 Odor & Corrosion Control 12.00 14.50 14.50 9.50 - Plant No. 1 Operations 41.75 44.75 45.75 49.75 52.75 Plant No. 2 Operations 46.00 48.00 48.00 47.00 47.00 Mechanical and Reliability Maintenance 74.00 57.00 59.00 58.00 62.00 Instrumentation & Electrical Maintenance 71.00 75.00 76.00 63.00 75.00 Regional Assets & Services 6.00 - - - - Collection Facilities Operations & Maintenance 23.00 24.00 27.00 26.00 - Facilities Maintenance & Fleet Services 17.00 34.00 34.00 35.00 - Environmental Laboratory & Ocean Monitoring - - - - 41.50 Department Subtotal 292.75 299.25 306.25 291.25 281.00 Grand Total - All Departments 634.00 641.00 641.00 641.00 637.00 Historical Staffing Detail A – 22 Authorized Authorized AuthorizedApproved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 Office of the General Manager 110 General Management Administration General Manager 1.00 1.00 1.00 1.00 1.00 Assistant General Manager - - - 1.00 1.00 Management Discretion 4.00 4.00 2.00 2.00 - Secretary to the General Manager 1.00 1.00 1.00 1.00 1.00 Intern 0.50 0.50 - - - Total General Management Administration 6.50 6.50 4.00 5.00 3.00 150 Assistant General Manager Administration Assistant General Manager 1.00 1.00 1.00 - - Legislative Affairs Liaison 1.00 1.00 - - - Principal Financial Analyst 1.00 1.00 - - - Total Asst. General Management Administration 3.00 3.00 1.00 - - 120 Board Services (formerly division 151) Clerk of the Board 1.00 1.00 1.00 1.00 1.00 Records Management Specialist 1.00 1.00 - - - Associate Clerk of the Board II 1.00 1.00 1.00 1.00 1.00 Administrative Assistant - 0.25 - - - Program Assistant 0.25 - - - - Office Assistant 2.00 2.00 - - - Total Board Services 5.25 5.25 2.00 2.00 2.00 140 Public Affairs (formerly division 152) Public Information Manager 1.00 1.00 - - - Public Affairs Manager - - 1.00 1.00 1.00 Principal Public Information Specialist 1.00 1.00 2.00 2.00 2.00 Senior Public Information Specialist 2.00 2.00 1.00 1.00 1.00 Public Information Specialist 2.00 2.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Assistant - - 2.00 2.00 2.00 Total Public Affairs 7.00 7.00 8.00 8.00 8.00 Total Office of the General Manager 21.75 21.75 15.00 15.00 13.00 Human Resources Department 160 Human Resources (formerly part of division 240) Director of Human Resources - - - - 1.00 Management Discretion - - - - 3.00 Human Resources Supervisor - - - - 1.00 Principal Human Resources Analyst - - - - 1.00 Senior Human Resources Analyst - - - - 6.00 CMMS Technician II - - - - 1.00 Associate Engineer l - - - - 1.00 Human Resources Analyst - - - - 3.00 Human Resources Assistant - - - - 2.00 Program Assistant - - - - 1.00 Total Human Resources - - - - 20.00 Total Human Resources Department - - - - 20.00 Administrative Services Department 210 Administrative Services Director of Finance & Administrative Services / Treasurer 1.00 1.00 1.00 1.00 1.00 Engineer - - - 1.00 - Principal Financial Analyst - - 1.00 1.00 1.00 Principal Staff Analyst - - - 1.00 1.00 Principal Environmental Specialist - - - - 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Finance Administration 2.00 2.00 3.00 5.00 5.00 2011-12 Budget Update A – 23 Authorized Authorized AuthorizedApproved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 220 Financial Management Controller 1.00 1.00 1.00 1.00 1.00 Accounting Manager 2.00 2.00 2.00 1.00 1.00 Accounting Supervisor 1.00 1.00 1.00 2.00 2.00 Principal Accountant 3.00 3.00 3.00 3.00 3.00 Principal Financial Analyst 2.00 2.00 1.00 1.00 - Senior Accountant - - 1.00 1.00 1.00 Senior Staff Analyst 1.00 1.00 - - - Accountant/Staff Analyst 1.00 1.00 2.00 2.00 2.00 Contracts/Purchasing Assistant - - 1.00 - - Payroll Technician 2.00 2.00 2.00 2.00 2.00 Accounting Assistant II 5.00 5.00 5.00 5.00 5.00 Total Financial Management 18.00 18.00 19.00 18.00 17.00 230 Contracts, Purchasing & Materials Management Contracts & Purchasing Manager 1.00 1.00 1.00 1.00 1.00 Contracts Supervisor 1.00 1.00 1.00 1.00 1.00 Purchasing Supervisor 1.00 1.00 1.00 1.00 1.00 Principal Contracts Administrator 1.00 2.00 2.00 2.00 2.00 Materials Control Supervisor 1.00 1.00 1.00 1.00 - Senior Contracts Administrator 5.50 3.50 2.75 2.75 2.75 Planner/Scheduler - - - - 1.00 Contracts Administrator 4.00 3.00 3.00 3.00 3.00 Senior Buyer 2.00 2.00 2.00 2.00 2.00 Buyer 2.00 2.00 2.00 2.00 2.00 Administrative Assistant 5.00 3.00 - - - Contracts/Purchasing Assistant - 2.00 4.00 4.00 5.00 Lead Storekeeper 3.00 3.00 3.00 3.00 2.00 Senior Storekeeper 3.00 3.00 3.00 3.00 4.00 Storekeeper 2.00 2.00 3.00 3.00 4.00 Total Contracts, Purchasing & Materials Management 31.50 29.50 28.75 28.75 30.75 240 Human Resources (formerly division 510,520,540,550) Human Resources & Employee Relations Manager 1.00 1.00 1.00 1.00 - Human Resources Supervisor 2.00 2.00 2.00 2.00 - Safety & Health Supervisor - - - 1.00 - Principal Human Resources Analyst 1.00 1.00 1.00 1.00 - Safety & Health Specialist - - - 3.00 - Security & Emergency Planning Specialist - - - 1.00 - Senior Human Resources Analyst 5.00 5.00 5.00 6.00 - Human Resources Analyst 3.00 3.00 3.00 3.00 - Safety & Health Representative - - - 2.00 - Human Resources Assistant 3.00 3.00 3.00 5.00 - Program Assistant 1.00 1.00 1.00 1.00 - Interns for agency - - 1.00 1.00 - Total Human Resources 16.00 16.00 17.00 27.00 - 250 Information Technology (formerly divisions 910, 920, 930, and 940) Information Technology Systems & Operations Manager 1.00 1.00 1.00 1.00 1.00 Information Technology Manager 1.00 2.00 2.00 2.00 2.00 Information Technology Supervisor - - - - 1.00 Principal Information Technology Analyst 2.00 7.00 6.00 6.00 6.00 Senior Information Technology Analyst 4.00 8.00 9.00 10.00 10.00 Information Technology Analyst III 3.00 5.00 4.00 4.00 2.00 Engineering Associate - - - - 1.00 Records Management Specialist - - 1.00 1.00 1.00 CMMS Technician II - - - - 5.00 Information Technology Analyst II 1.00 2.00 3.00 3.00 3.00 Engineering Data Management Technician II - - - - 3.00 CMMS Technician I - - - - 1.00 Information Technology Analyst I 2.00 2.00 2.00 2.00 2.00 Engineering Assistant II - - - - 1.00 Staff Analyst 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 - - - Administrative Assistant - - 1.00 1.00 1.00 Engineering Assistant I - - - - 1.00 Information Technology Technician II 2.00 2.00 2.00 2.00 2.00 Program Assistant - - - - 1.00 Total Information Technology 18.00 31.00 32.00 33.00 45.00 Historical Staffing Detail A – 24 Authorized Authorized Authorized Approved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 260 Risk Management (formerly part of division 240) Risk Manager - - - - 1.00 Safety & Health Supervisor - - - - 1.00 Principal Financial Analyst - - - - 1.00 Safety & Health Specialist - - - - 2.00 Security & Emergency Planning Specialist - - - - 1.00 Information Technology Analyst III - - - - 1.00 Occupational Health Nurse - - - - 1.00 Senior Safety & Health Representative - - - - 1.00 Safety & Health Representative - - - - 3.00 Administrative Assistant - - - - 1.00 Total Human Resources - - - - 13.00 940 Information Technology Programming & Database Systems Information Technology Manager 1.00 - - - - Principal Information Technology Analyst 5.00 - - - - Senior Information Technology Analyst 4.00 - - - - Information Technology Analyst III 2.00 - - - - Total Programming & Database Systems 12.00 - - - - 153 Safety & Health Safety & Health Manager 1.00 1.00 1.00 - - Safety & Health Supervisor 1.00 1.00 1.00 - - Safety & Health Specialist 2.00 2.00 3.00 - - Security & Emergency Planning Specialist 1.00 1.00 1.00 - - Safety & Health Representative 2.00 2.00 2.00 - - Human Resources Assistant 1.00 1.00 1.00 - - Intern 0.50 - - - - Total Safety & Health 8.50 8.00 9.00 - - Total Administrative Services Department 106.00 104.50 108.75 111.75 110.75 Facilities Support Services Department 310 Facilities Support Services Administration Director of Facilities Support - - - - 1.00 Principal Financial Analyst - - - - 1.00 Executive Assistant - - - - 1.00 Intern - - - - 0.75 Total Facilities Support Services Administration - - - - 3.75 320 Equipment / Rebuild Facilities Manager - - - - 1.00 Maintenance Supervisor - - - - 2.00 Lead Mechanic - - - - 1.00 Machinist - - - - 1.00 Automotive/ Heavy Equipment Technician - - - - 3.00 Equipment Operator - - - - 2.00 Senior Mechanic - - - - 3.00 Welder/Fabricator - - - - 3.00 Automotive/ Heavy Equipment Assistant - - - - 1.00 Office Assistant - - - - 1.00 Total Equipment / Rebuild - - - - 18.00 330 Facilities Engineering (formerly division 770) Engineering Manager - - - - 1.00 Engineering Supervisor - - - - 1.00 Senior Engineer - - - - 1.00 Engineer - - - - 2.00 Materials Control Supervisor - - - - 1.00 Maintenance Specialist - - - - 4.00 Senior Engineering Associate - - - - 1.00 Engineering Associate - - - - 1.00 Administrative Assistant - - - - 1.00 Total Facilities Engineering - - - - 13.00 2011-12 Budget Update A – 25 Authorized Authorized AuthorizedApproved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 340 Collection Facilities Source Control Manager - - - - 1.00 Engineering Supervisor - - - - 3.00 Maintenance Supervisor - - - - 2.00 Associate Engineer lll - - - - 1.00 Principal Environmental Specialist - - - - 1.00 Senior Environmental Specialist - - - - 3.00 Source Control Inspector II - - - - 9.00 Lead Mechanic - - - - 5.00 Administrative Assistant - - - - 1.00 Senior Mechanic - - - - 9.00 Engineering Assistant I - - - - 1.50 Environmental Technician - - - - 4.00 Mechanic - - - - 8.00 Intern - - - - 0.50 Total Collection Facilities - - - - 49.00 Total Facilities Support Services Department - - - - 83.75 Technical Services Department 610 Technical Services Administration Director of Technical Services 1.00 1.00 1.00 1.00 - Senior Engineer 1.00 1.00 1.00 1.00 - Associate Engineer III - - 1.00 1.00 - Associate Engineer II - 1.00 - - - Executive Assistant 1.00 1.00 1.00 1.00 - Total Technical Services Administration 3.00 4.00 4.00 4.00 - 620 Environmental Compliance & Regulatory Affairs Environmental Assessment Manager 1.00 1.00 1.00 1.00 - Environmental Supervisor 3.00 2.00 2.00 1.00 - Senior Engineer 1.00 1.00 1.00 - - Senior Scientist 1.00 1.00 1.00 1.00 - Engineer 1.00 1.00 1.00 - - Regulatory Specialist 3.00 2.00 2.00 2.00 - Associate Engineer III 1.00 1.00 1.00 1.00 - Principal Environmental Specialist 2.00 1.50 1.50 1.50 - Principal Laboratory Analyst - - - 1.00 - Senior Environmental Specialist 3.00 3.50 3.50 3.50 - Administrative Assistant 1.00 1.00 1.00 1.00 - Program Assistant - - - 1.00 - Intern 1.50 1.50 1.00 1.00 - Total Environmental Compliance 18.50 16.50 16.00 15.00 - 630 Environmental Laboratory and Ocean Monitoring Laboratory Manager 1.00 1.00 1.00 1.00 - Environmental Supervisor 1.00 1.00 1.00 1.00 - Laboratory Section Supervisor 3.00 3.00 3.00 3.00 - LIMS Administrator 1.00 1.00 1.00 - - Senior Scientist 3.00 3.00 3.00 3.00 - Boat Captain 1.00 - - - - Scientist 2.00 2.00 2.00 2.00 - Principal Environmental Specialist 2.00 2.00 2.00 2.00 - Principal Laboratory Analyst 10.00 10.00 8.00 7.00 - Senior Environmental Specialist 3.00 4.00 5.00 6.00 - Senior Laboratory Analyst 11.00 11.00 11.00 10.00 - Environmental Specialist 1.00 1.00 1.00 1.00 - Laboratory Analyst 3.00 3.00 4.00 3.00 - Administrative Assistant 1.00 1.00 1.00 1.00 - Laboratory Assistant 3.00 3.00 3.00 3.00 - Program Assistant 1.00 - - - - Intern 1.50 0.50 0.50 0.50 - Total Environmental Laboratory and Ocean Monitoring 48.50 46.50 46.50 43.50 - Historical Staffing Detail A – 26 Authorized Authorized AuthorizedApproved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 640 Source Control Source Control Manager 1.00 1.00 1.00 1.00 - Engineering Supervisor 2.00 2.00 2.00 3.00 - Senior Engineer - - - 1.00 - Senior Regulatory Specialist 1.00 1.00 1.00 1.00 - Engineer 6.00 6.00 6.00 6.00 - Regulatory Specialist 1.00 1.00 1.00 - - Source Control Supervisor 1.00 1.00 1.00 1.00 - Associate Engineer III 3.00 3.00 3.00 3.00 - Principal Environmental Specialist 2.00 2.00 2.00 2.00 - Senior Environmental Specialist 1.00 2.00 2.00 2.00 - Source Control Inspector II 12.00 11.00 11.00 11.00 - Administrative Assistant 1.00 1.00 1.00 1.00 - Environmental Technician 3.00 3.00 3.00 3.00 - Program Assistant 4.00 5.00 4.00 4.00 - Office Assistant 1.00 1.00 1.00 1.00 - Total Source Control 39.00 40.00 39.00 40.00 - Total Technical Services Department 109.00 107.00 105.50 102.50 - Engineering Department 710 Engineering Administration Assistant General Manager - - - - 1.00 Director of Engineering 1.00 1.00 1.00 1.00 - Executive Assistant 1.00 1.00 1.00 1.00 1.00 Total Engineering Administration 2.00 2.00 2.00 2.00 2.00 740 Planning Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 2.00 2.00 1.00 1.00 Senior Engineer - 1.00 2.00 1.00 4.00 Engineer 2.00 3.00 1.00 1.00 1.00 Principal Staff Analyst - - 1.00 1.00 - Associate Engineer III 1.00 - - - 1.00 Senior Engineering Associate 2.00 3.00 1.00 1.00 1.00 Senior Engineering Data Management Specialist 1.00 1.00 - - - Associate Engineer lI - - - 1.00 Engineering Associate 2.00 2.00 2.00 1.00 1.00 Engineering Data Management Technician II 3.00 2.00 2.00 - - Associate Engineer l - - 1.00 1.00 - Engineering Assistant II - 1.00 1.00 - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Engineering Assistant I 2.00 2.00 2.00 - - Total Planning 16.00 19.00 17.00 9.00 12.00 750 Project Management Office Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 1.00 1.00 1.00 - - CIP Project Management Supervisor - - 1.00 1.00 1.00 Program Controls Supervisor - - - 1.00 1.00 Senior Capital Improvement Program Project Manager 1.00 1.00 - - - Capital Improvement Program Project Manager 6.00 6.00 6.00 5.00 5.00 Senior Engineer - 1.00 1.00 1.00 1.00 Principal Project Controls Analyst - - 1.00 1.00 1.00 Principal Engineering Data Management Specialist 1.00 1.00 1.00 1.00 - Principal Staff Analyst 2.00 2.00 2.00 1.00 2.00 Cost Estimator 1.00 1.00 1.00 1.00 1.00 Planner/Scheduler 1.00 1.00 1.00 1.00 1.00 Senior Staff Analyst - - - 1.00 1.00 Engineering Assistant II 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 - 1.00 1.00 - Office Assistant 1.00 1.00 1.00 1.00 1.00 Total Project Management Office 17.00 17.00 19.00 18.00 17.00 2011-12 Budget Update A – 27 Authorized Authorized Authorized Approved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 760 Engineering & Construction Engineering Manager 1.00 1.00 1.00 1.00 1.00 Engineering Supervisor 4.00 4.00 4.00 3.00 3.00 Senior Construction Inspection Supervisor 1.00 1.00 1.00 1.00 1.00 Senior Engineer 8.00 9.00 8.00 8.00 8.00 Construction Inspection Supervisor 3.00 2.00 2.00 2.00 2.00 Engineer 10.00 12.00 10.00 13.00 15.00 Principal Staff Analyst - 1.00 - - - Associate Engineer lII 4.00 5.00 4.00 3.00 2.00 Senior Engineering Associate 1.00 1.00 1.00 1.00 1.00 Senior Construction Inspector 7.00 7.00 7.00 7.00 7.00 Associate Engineer lI - - - 1.00 1.00 Senior Staff Analyst - - 1.00 - - Construction Inspector 10.00 10.00 10.00 10.00 9.00 Associate Engineer l - - 1.00 - 1.00 Engineering Assistant II 3.00 2.00 2.00 2.00 2.00 Public Information Specialist - - 1.00 1.00 1.00 Administrative Assistant 3.00 4.00 3.00 3.00 3.00 Engineering Assistant I 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.00 - - - - Intern 1.50 0.50 0.50 0.50 0.50 Total Engineering & Construction 58.50 60.50 57.50 57.50 58.50 770 Facilities Engineering Engineering Manager 1.00 1.00 1.00 1.00 - Engineering Supervisor 1.00 1.00 1.00 1.00 - Senior Engineer 1.00 - - 1.00 - Engineer 5.00 5.00 5.00 3.00 - Associate Engineer lll 1.00 1.00 - - - Associate Engineer II 1.00 - 1.00 1.00 - Engineering Associate - 1.00 1.00 1.00 - Administrative Assistant 1.00 1.00 1.00 1.00 - Total Facilities Engineering 11.00 10.00 10.00 9.00 - 780 Asset Management Engineering Manager - - - 1.00 1.00 Engineering Supervisor - - - 2.00 - Senior Engineer - - - 4.00 3.00 Principal Information Technology Analyst - - - 2.00 - Engineer - - - 3.00 1.00 Utilities Management Specialist - - - 1.00 1.00 Senior Information Technology Analyst - - - 3.00 - Information Technology Analyst III - - - 2.00 - Engineering Associate - - - 1.00 - Information Technology Analyst II - - - 1.00 - Engineering Data Management Technician II - - - 2.00 - Associate Engineer l - - - 1.00 - Engineering Assistant II - - - 1.00 - Engineering Assistant I - - - 1.00 - Total Asset Management - - - 25.00 6.00 790 Environmental Compliance Environmental Assessment Manager - - - - 1.00 Engineering Supervisor - - - - 2.00 Environmental Supervisor - - - - 1.00 Senior Scientist - - - - 1.00 Engineer - - - - 6.00 Regulatory Specialist - - - - 2.00 Associate Engineer III - - - - 4.00 Principal Environmental Specialist - - - - 2.50 Principal Laboratory Analyst - - - - 1.00 Senior Environmental Specialist - - - - 4.50 Administrative Assistant - - - - 2.00 Program Assistant - - - - 4.00 Office Assistant - - - - 1.00 Intern - - - - 1.00 Total Environmental Compliance - - - - 33.00 Total Engineering Department 104.50 108.50 105.50 120.50 128.50 Historical Staffing Detail A – 28 Authorized Authorized AuthorizedApproved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 Operations & Maintenance Department 810 Operations & Maintenance Administration Director of Operations & Maintenance 1.00 1.00 1.00 1.00 1.00 Principal Financial Analyst - - - 1.00 - Executive Assistant 1.00 1.00 1.00 1.00 1.00 Intern - - - - 0.75 Total Operations & Maintenance Administration 2.00 2.00 2.00 3.00 2.75 410 Regional Assets & Services Engineering Supervisor 1.00 - - - - Senior Engineer 1.00 - - - - Principal Financial Analyst 1.00 - - - - Principal Staff Analyst 1.00 - - - - Senior Engineering Associate 1.00 - - - - Executive Assistant 1.00 - - - - Total Regional Assets & Services 6.00 - - - - 820 Odor & Corrosion Control Engineering Manager 1.00 - 1.00 1.00 - Engineering Supervisor 1.00 1.00 - - - Senior Engineer 2.00 3.00 3.00 2.00 - Senior Scientist 0.50 1.00 - - - Engineer - 1.00 - - - Principal Financial Analyst - 1.00 1.00 - - Regulatory Specialist 1.00 1.00 1.00 - - Scientist - - 1.00 - - Associate Engineer lll 2.00 2.00 2.00 1.00 - Associate Engineer ll - - 1.00 - - Senior Environmental Specialist 3.00 3.00 3.00 3.00 - Engineering Assistant I - - - 1.00 - Environmental Technician 1.00 1.00 1.00 1.00 - Intern 0.50 0.50 0.50 0.50 - Total Odor & Corrosion Control 12.00 14.50 14.50 9.50 - 830 Plant No. 1 Operations Engineering Manager - 1.00 - - - Operations Manager - - 1.00 1.00 1.00 Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Senior Engineer - - - 1.00 2.00 Engineer - - - 1.00 2.00 Operations Supervisor 7.00 7.00 7.00 7.00 7.00 Scientist - - - 1.00 1.00 Associate Engineer ll - - - 1.00 1.00 Senior Environmental Specialist - - - - 1.00 Lead Plant Operator 5.00 5.00 5.00 5.00 5.00 Senior Plant Operator 16.00 17.00 15.00 15.00 15.00 Administrative Assistant 0.75 0.75 0.75 0.75 0.75 Plant Operator 9.00 10.00 13.00 13.00 14.00 Control Center Technician 3.00 3.00 3.00 3.00 2.00 Total Plant No. 1 Operations 41.75 44.75 45.75 49.75 52.75 840 Plant No. 2 Operations Chief Plant Operator 1.00 1.00 1.00 1.00 1.00 Operations Supervisor 7.00 7.00 7.00 7.00 7.00 Lead Plant Operator 5.00 5.00 5.00 5.00 5.00 Senior Plant Operator 12.00 13.00 13.00 12.00 12.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Equipment Operator 1.00 1.00 1.00 - - Plant Operator 18.00 19.00 19.00 20.00 20.00 Control Center Technician 1.00 1.00 1.00 1.00 1.00 Total Plant No. 2 Operations 46.00 48.00 48.00 47.00 47.00 2011-12 Budget Update A – 29 Authorized Authorized AuthorizedApproved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 850 Mechanical and Reliability Maintenance Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Senior Engineer 2.00 - - - - Senior Maintenance Supervisor 1.00 1.00 - - - Engineer 2.00 - - - - Utilities Management Specialist 1.00 1.00 1.00 - - Maintenance Supervisor 7.00 5.00 6.00 6.00 6.00 Associate Engineer III 1.00 1.00 1.00 1.00 1.00 Maintenance Specialist 7.00 - - - 4.00 Senior Public Information Specialist - - 1.00 1.00 1.00 Reliability Maintenance Technician - 1.00 2.00 2.00 2.00 CMMS Technician II 6.00 - - - - Lead Mechanic 5.00 5.00 5.00 5.00 5.00 Lead Welder/Fabricator 1.00 1.00 - - - Machinist 1.00 1.00 1.00 1.00 - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Mechanic 33.00 33.00 33.00 33.00 30.00 Welder/Fabricator 2.00 2.00 3.00 3.00 - Engineering Assistant I 1.00 - - - - Lead Facilities Worker - - - - 2.00 Facilities Worker/Builder - - - - 3.00 Facilities Worker/Painter - - - - 2.00 Mechanic 1.00 2.00 2.00 2.00 2.00 Maintenance Worker - 2.00 2.00 2.00 2.00 Office Assistant 1.00 - - - - Total Mechanical and Reliability Maintenance 74.00 57.00 59.00 58.00 62.00 860 Instrumentation & Electrical Maintenance Engineering Manager - - - 1.00 1.00 Process Controls Manager 1.00 1.00 1.00 - - Engineering Supervisor 1.00 2.00 2.00 1.00 1.00 Senior Engineer 2.00 2.00 2.00 - 2.00 Principal Information Technology Analyst 2.00 2.00 2.00 - 2.00 Engineer 2.00 2.00 2.00 - 2.00 Senior Information Technology Analyst 3.00 3.00 3.00 - 3.00 Maintenance Supervisor 5.00 5.00 5.00 5.00 5.00 Information Technology Analyst III 2.00 2.00 2.00 - 2.00 Information Technology Analyst II 2.00 1.00 1.00 - 1.00 Lead Electrical Technician 4.00 4.00 4.00 4.00 4.00 Lead Instrumentation Technician 2.00 3.00 3.00 3.00 3.00 Lead Power Plant Operator 1.00 1.00 1.00 1.00 1.00 Electrical Technician II 15.00 15.00 14.00 14.00 14.00 Instrumentation Technician II 19.00 19.00 19.00 19.00 18.00 Power Plant Operator II 9.00 9.00 9.00 9.00 9.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Power Plant Operator I - - 1.00 1.00 1.00 Electrical Technician I - 1.00 1.00 1.00 1.00 Instrumentation Technician I - 2.00 1.00 1.00 1.00 Maintenance Worker - - 2.00 2.00 3.00 Total Instrumentation & Electrical Maintenance 71.00 75.00 76.00 63.00 75.00 870 Collection Facilities Operations & Maintenance (formerly division 420) Engineering Manager 1.00 1.00 1.00 - - Engineering Supervisor - - - 1.00 - Maintenance Supervisor 2.00 2.00 2.00 2.00 - Senior Engineering Associate - - 1.00 1.00 - Lead Mechanic 4.00 4.00 5.00 5.00 - Administrative Assistant - 1.00 1.00 - - Senior Mechanic 9.00 9.00 9.00 9.00 - Mechanic 7.00 7.00 8.00 8.00 - Total Collection Facilities Operations & Maintenance 23.00 24.00 27.00 26.00 - Historical Staffing Detail A – 30 Authorized Authorized Authorized Approved Proposed FTEs FTEs FTEs FTEs FTEs Division & Position 2007-08 2008-09 2009-10 2010-11 2011-12 880 Facilities Maintenance & Fleet Services (formerly division 430) Facilities Manager 1.00 1.00 1.00 1.00 - Maintenance Supervisor 2.00 4.00 4.00 4.00 - Maintenance Specialist - 7.00 7.00 6.00 - CMMS Technician II - 6.00 6.00 7.00 - CMMS Technician I - - - 1.00 - Lead Mechanic 1.00 1.00 1.00 1.00 - Administrative Assistant - - - 1.00 - Automotive/ Heavy Equipment Technician 3.00 3.00 3.00 3.00 - Equipment Operator 2.00 2.00 2.00 2.00 - Engineering Assistant I - 1.00 1.00 - - Lead Facilities Worker 3.00 3.00 2.00 2.00 - Facilities Worker/Builder 2.00 2.00 3.00 3.00 - Facilities Worker/Painter 2.00 2.00 2.00 2.00 - Automotive/ Heavy Equipment Assistant 1.00 1.00 1.00 1.00 - Office Assistant - 1.00 1.00 1.00 - Total Facilities Maintenance & Fleet Services 17.00 34.00 34.00 35.00 - 890 Environmental Laboratory and Ocean Monitoring (formerly division 630) Environmental Lab & Ocean Monitoring Manager - - - - 1.00 Environmental Supervisor - - - - 1.00 Laboratory Section Supervisor - - - - 2.00 Senior Scientist - - - - 3.00 Scientist - - - - 1.00 Principal Environmental Specialist - - - - 3.00 Principal Laboratory Analyst - - - - 7.00 Senior Environmental Specialist - - - - 6.00 Senior Laboratory Analyst - - - - 10.00 Laboratory Analyst - - - - 3.00 Administrative Assistant - - - - 1.00 Laboratory Assistant - - - - 3.00 Intern - - - - 0.50 Total Environmental Laboratory and Ocean Monitoring - - - - 41.50 Total Operations & Maintenance Department 292.75 299.25 306.25 291.25 281.00 Grand Total, All Departments 634.00 641.00 641.00 641.00 637.00 Appropriations Limit A - 31 Appropriations Limit Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was adopted by California voters in 1980. The Gann Limit placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and appropriate (authorize to spend) each year. The limit is different for each agency and the limit changes each year. The annual limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. Proposition 111 was passed by the State’s voters in June 1990. This legislation made changes to the manner in which the Appropriations Limit is to be calculated: The annual adjustment factors for inflation and population have been changed. Instead of using the lesser of California per capita income, or U.S. CPI, each agency may choose either the growth in the California per capita income, or the growth in assessed valuation due to new non-residential construction within the district. For population, instead of using only the population growth of an agency, each agency may choose to use the population growth within its county. These are both annual elections. The revised annual adjustment factors will be applied to the 1986-87 limit for most agencies and each year in between in order to calculate the 1990-91 limit. The actual limits for the intervening years, however, are not affected. Expenditures for “qualified capital outlay”, which are capital assets with a value of more than $100,000 and an expected life of 10 years or more, are excluded from the limit. An agency which exceeds the limit in any one year may choose to not give a tax refund if they fall below the limit in the next fiscal year. They then have two more years to refund any remaining excess or to obtain a successful override vote. In certain situations, proceeds of taxes may be spent on emergencies without having to reduce the limit in future years. Each agency also conducts a review of its Appropriations Limit during its annual financial audit. The law requires a governing body to annually adopt, by resolution, an appropriations limit for the following year, along with a recorded vote regarding which of the annual adjustment factors have been selected. The Orange County Sanitation District’s appropriations limit and annual adjustment factors are adopted at the same meeting as the budget. The adjustment factors used for 2011-12 are the weighted average change in city population and the change in state per capita personal income. The following table shows the annual appropriations limit for each of the last two years and the appropriations limit and the appropriations, or proceeds from taxes, for 2011-12. The decrease in the limit is based upon population changes ranging from 0.17% to 1.45% for major cities within the District as provided by the State Department of Finance and a per capita personal income change of 2.51% as provided by the State Department of Finance. Annual Appropriation Limits: 2009-10 $80,476,000 2010-11 $79,329,0002011-12 $81,888,000 Proceeds of Taxes (Appropriations) 2011-12 $55,061,000 As a result of the July 1998 consolidation of the District, a single limit is presented in contrast to individual limits shown in years prior to 1998. Population changes for representative cities have continued to be used in order to ensure consistency and to eliminate significant population growth in parts of the County outside of the District’s service area. This method results in a lower limit than using the County-wide change. P S L F O A L D C S A A M D M S Misce Year of FormForm of GoAuthority ... ..................Service Are Service Pop2010-11 As Primary TreatmePlant NoPlant No Secondary Treatm Plant NoPlant No Legend: mgd – million gallo kwh – kilowatts per Fees and Cha One-Time 3-B Average Annua Local SFR Fee District's Avg. S Cost to Collect Summary of C August 2000 R August 2003 N May 2007A Re December 200 May 2008A Re September 20 0 100 200 300 400 2010- D ellaneou mation ..............vernment .................................. ........................ Cea ...................... pulation .............sessed Value .... ent Capacity (inco. 1 ...................o. 2 ................... TOTAL ....... ment Capacity: o. 1 ...................o. 2 ................... TOTAL ....... ons per day r hour rges: edroom Resid al Single-Fami e Share of Ad Va t, Treat, & Disp OP Issues: Refunding / Ne New Money funding 07B New Mone funding 08B New Mon Plant 1 95 204 11 Est. Influent Daily Influent F Capacity Com us Statist .................................... County Sa.................. Sect California Health.......................... ......... Approxim.......................... cludes standby): .................................................... .......................... .................................................... .......................... dence Connect ily Residence alorem Propert pose of 1 Millio w Money 19$ 19 9 ey 28 3 ey 2 Plant 2 T 112 20 168 Capacity - Primar low to Total Pr mparison (in m tics Gen .................. 1948anitation Distriction 4700 et. seq h & Safety Code..... 463 sq. miles mately 2.5 million.... $304.3 billion Treat .... 204 mgd .... 168 mgd .... 372 mgd .... 122 mgd ...... 90 mgd .... 212 mgd Financ tion Fee ty Tax on Gallons 94,000,000 91,500,000 93,060,000 84,825,000 30,535,000 26,975,000 Total 07 372 ry Treatment rimary gd) A - 32 neral Informa 8 t q. e s n n Miles oOn-PlaOff-Pla Operat……… ………2011-1 tment Inform 2009-1 2009-1 2009-1 2009-1 2009-1 2010-11 EsPlaPla 2010-11 Est PlaPla cial Informati 2009-10 Actual $4,998.00 $221.00 $204.00 1.80% $1,876.01 May 2009A N May 2010A N December 2 December 2 Total Outsta ation of Sewers ..........ant Pump Stationant Pump Station ting Authority ...…………… ...... … ………… .......... …12 Authorized St mation 10 Influent BODPlant No. 1 ...Plant No. 2 ... 10 Influent SuspPlant No. 1 ...Plant No. 2 ... 10 Effluent BOD 10 Effluent Susp 10 Biosolids Pro stimated Averageant No. 1 ...........ant No. 2 ........... TOTAL timated Electric ant No. 1 ...........ant No. 2 ........... TOTAL ion 2010-11 Projected $3,261.00 $244.00 $208.00 %1.80% 1,904.37$ New Money New Money 2010B Refundi 2010C New Mo anding COP Ba ..........................n…………… ....ns ...................... ................... RW………………… …..Statewide Wtaff (Full-Time E D: .................................................... ended Solids: .................................................... D ........................ pended Solids .... oduced & Reused e Daily Influent.................................................... L ........................ ity Generated: .................................................... L ........................ 2011-1 Original d Propose 0 $3,261. 0 $267. 0 $212. %1.8 7 1,992.$ ing oney alance 7/1/11 .............................. …………….......................... WQCB/NPDES P………………CA WDR Order No. 2Equivalent) ....... ..... 290 milligram..... 210 milligram ..... 328 milligram..... 292 milligram ....... 36 milligram ....... 30 milligram d ............ 252,71 : ...................... 95.................... 112 .................... 207 ......... 39,720,000........ 42,432,000 ......... 82,152,000 220 lly Up edPro 00 $ 00 00 0% 89 $ 194 80 154 157 1,407$ 587 miles ………..2 ............ 15 Permit No. A0110604 2006-0003 ..... 637.00 ms per liter ms per liter ms per liter ms per liter ms per liter ms per liter 12 wet tons 5 mgd 2 mgd 7 mgd 0 kwh 0 kwh 0 kwh 11-12 dated posed $3,341.00 $267.00 $212.00 1.80% 2,019.00 4,595,000 0,000,000 4,665,000 7,000,000 7,155,000